MIRA INFORM REPORT

Report No. :	339760
Report Date :	15.09.2015

IDENTIFICATION DETAILS

Name :	SALIMS PAPER PRIVATE LIMITED
Registered Office :	1/282, Gramudyog Road, Sanganer, Jaipur – 302020, Rajasthan
Mobile No.:	91-9414255255 (Mr. Pramod Agarwal)
Country :	India
Financials (as on) :	31.03.2015
Date of Incorporation :	05.05.2011
Com. Reg. No.:	17-035076
Capital Investment / Paid-up Capital :	Rs.0.100 Million
CIN No.: [Company Identification No.]	U21093RJ2011PTC035076
IEC No.:	1312019450
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAPCS8021B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Tissue Papers.
No. of Employees :	Not yet appointed

RATING & COMMENTS

MIRA’s Rating :

Ca (12)

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 :	Yet to commence its operations
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Even though the company was incorporated on 5^th May 2011, it will commence its business activities from April 2016. Mr. Pramod Agarwal, Chartered Accountant of the company has provided the information to us and further he also claimed that company will starts its business activities from April 2016. The company has incurred pre-operating expenses which has resulted in accumulated losses during the financial year 2015. As per registrar of company business is active. Payments are reported to be unknown. In view of yet to commence of its business activities, the company can be considered for business dealings with 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

Rating Agency Name	Not Available
Rating	Not Available
Rating Explanation	Not Available
Date	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 31-03-2015.

INFORMATION PARTED BY

Name :	Mr. Pramod Agarwal
Designation :	Chartered Accountant
Contact No.:	91-9414255255
Date :	12.09.2015

LOCATIONS

Registered Office :	1/282, Gramudyog Road, Sanganer, Jaipur – 302020, Rajasthan, India
Tel. No.:	91-141-2790067
Mobile No.:	91-9414255255 (Mr. Pramod Agarwal)
Fax No.:	Not Available
E-Mail :	moinskargzi@yahoo.com pramod108@yahoo.com
Location :	Owned
Factory :	Plot No. SP-6, Industrial Area, SKS Reengus (Extension), Sikar, Rajasthan, India
Area:	36068.45 Sq.mtr.
Location :	Owned

DIRECTORS

AS ON 15.09.2014

Name :

Mr. Aminuddin Kagzi

Designation :

Director

Address :

Kagzi Mohalla, Sanganer, Jaipur - 302029, Rajasthan, India

Date of Birth/Age :

15.09.1970

Qualification :

Graduate

Experience :

20 Years

Date of Appointment :

05.05.2011

PAN No.:

ACCPA2488G

DIN No.:

01964450

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	U45400RJ1998PTC015290	SANGA PAPER AND JUTE PARK PRIVATE LIMITED	Director	28/12/1998	28/12/1998	-	Active	NO
2	U45201RJ2007PTC023569	SANGA BUILDERS PRIVATE LIMITED	Director	02/01/2007	02/01/2007	01/04/2013	Active	NO
3	U50300RJ2008PTC025759	SANGA AUTOMOBILES PRIVATE LIMITED	Managing director	08/02/2008	08/02/2008	-	Active	NO
4	U55101RJ2008PTC026207	SANGA HOTELS AND RESORTS PRIVATE LIMITED	Director	25/03/2008	25/03/2008	-	Active	NO
5	U15209RJ2008PTC026208	SANGA AGROTECH PRIVATE LIMITED	Director	25/03/2008	25/03/2008	-	Active	NO
6	U21093RJ2011PTC035076	SALIMS PAPER PRIVATE LIMITED	Director	05/05/2011	05/05/2011	-	Active	NO
7	U74120DL2006PTC146846	SKY ENERGY PRIVATE LIMITED	Director	30/09/2014	19/07/2014	-	Active	NO

Name :

Mr. Nizamuddin Kagzi

Designation :

Director

Address :

Kagzi Colony, Sanganer, Jaipur - 302029, Rajasthan, India

Date of Birth/Age :

11.08.1960

Qualification :

Graduate

Experience :

25 Years

Date of Appointment :

05.05.2011

PAN No.:

ABEPN3817F

DIN No.:

02044955

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	U45400RJ1998PTC015290	SANGA PAPER AND JUTE PARK PRIVATE LIMITED	Director	28/12/1998	28/12/1998	-	Active	NO
2	U45201RJ2007PTC023569	SANGA BUILDERS PRIVATE LIMITED	Director	02/01/2007	02/01/2007	01/04/2013	Active	NO
3	U50300RJ2008PTC025759	SANGA AUTOMOBILES PRIVATE LIMITED	Whole-time director	08/02/2008	08/02/2008	-	Active	NO
4	U55101RJ2008PTC026207	SANGA HOTELS AND RESORTS PRIVATE LIMITED	Director	25/03/2008	25/03/2008	-	Active	NO
5	U15209RJ2008PTC026208	SANGA AGROTECH PRIVATE LIMITED	Director	25/03/2008	25/03/2008	-	Active	NO
6	U21093RJ2011PTC035076	SALIMS PAPER PRIVATE LIMITED	Director	05/05/2011	05/05/2011	-	Active	NO

Name :

Mr. Riyazuddin Kagzi

Designation :

Director

Address :

A-46, Kagzi Mohalla, Sanganer, Jaipur - 302023, Rajasthan, India

Date of Birth/Age :

09.10.1988

Qualification :

Graduate

Experience :

2 Years

Date of Appointment :

12.03.2013

PAN No.:

BWJPK7244J

DIN No.:

02797957

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	U50300RJ2008PTC025759	SANGA AUTOMOBILES PRIVATE LIMITED	Director	01/10/2009	01/10/2009	-	Active	NO
2	U21093RJ2011PTC035076	SALIMS PAPER PRIVATE LIMITED	Director	12/03/2013	12/03/2013	-	Active	NO
3	U70101RJ2013PTC044257	HIGHTECH BUILDHOME PRIVATE LIMITED	Director	12/11/2013	12/11/2013	-	Active	NO
4	U70101RJ2013PTC044258	S K MODERN INFRASTRUCTURE PRIVATE LIMITED	Director	12/11/2013	12/11/2013	-	Active	NO
5	U70101RJ2013PTC044623	SANGAM REALHOME PRIVATE LIMITED	Director	18/12/2013	18/12/2013	-	Active	NO

Name :

Mr. Kalimuddin Kagzi

Designation :

Director

Address :

A-46, Kagzi Mohalla, Sanganer, Jaipur, 302023, Rajasthan, India

Date of Birth/Age :

09.08.1988

Qualification :

Graduate

Experience :

5 Years

Date of Appointment :

12.03.2013

PAN No.:

BWJPK7626J

DIN No.:

02797960

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	U50300RJ2008PTC025759	SANGA AUTOMOBILES PRIVATE LIMITED	Director	01/10/2009	01/10/2009	-	Active	NO
2	U21093RJ2011PTC035076	SALIMS PAPER PRIVATE LIMITED	Director	12/03/2013	12/03/2013	-	Active	NO

Name :

Mr. Zainuddin Kagzi

Designation :

Additional Director

Address :

A-46, Kagzi Colony, Sanganer, Jaipur - 302023, Rajasthan, India

Date of Birth/Age :

19.04.1990

Qualification :

Graduate

Experience :

1 Year

Date of Appointment :

01.04.2013

PAN No.:

DILPK9391G

DIN No.:

02797963

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	U21093RJ2011PTC035076	SALIMS PAPER PRIVATE LIMITED	Additional director	01/04/2013	01/04/2013	-	Active	NO
2	U50300RJ2008PTC025759	SANGA AUTOMOBILES PRIVATE LIMITED	Additional director	01/04/2013	01/04/2013	-	Active	NO
3	U70101RJ2013PTC044257	HIGHTECH BUILDHOME PRIVATE LIMITED	Director	12/11/2013	12/11/2013	-	Active	NO
4	U70101RJ2013PTC044258	S K MODERN INFRASTRUCTURE PRIVATE LIMITED	Director	12/11/2013	12/11/2013	-	Active	NO

Name :

Mr. Ahteshamuddin Kagzi

Designation :

Additional Director

Address :

A-46, Kagzi Mohalla, Sanganer, Jaipur - 302023, Rajasthan, India

Date of Birth/Age :

09.01.1981

Qualification :

Graduate

Experience :

5 Years

Date of Appointment :

01.04.2013

PAN No.:

AYFPK2747P

DIN No.:

02798640

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	U21093RJ2011PTC035076	SALIMS PAPER PRIVATE LIMITED	Additional director	01/04/2013	01/04/2013	-	Active	NO
2	U50300RJ2008PTC025759	SANGA AUTOMOBILES PRIVATE LIMITED	Additional director	01/04/2013	01/04/2013	-	Active	NO
3	U70101RJ2014PTC044751	S K PROPCON PRIVATE LIMITED	Director	02/01/2014	02/01/2014	-	Active	NO
4	U72200DL1999PTC098926	FUTURISTIC SOFTWARE SOLUTIONS PRIVATE LIMITED	Additional director	13/02/2014	13/02/2014	29/09/2014	Active	NO

KEY EXECUTIVES

Name :	Mr. Pramod Agarwal
Designation :	Chartered Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 15.09.2014

Names of Shareholders	No. of Shares	%age holding
Aminuddin Kagzi	1,666	16.66
Alimuddin Kagzi	1,667	16.67
Nizamuddin Kagzi	1,667	16.67
Moinuddin Kagzi	1,667	16.67
Basiruddin Kagzi	1,666	16.66
Islamuddin Kagzi	1,667	16.67
Total	10,000	100.00

AS ON 15.09.2014

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Supplier of Tissue Papers.
Products :	Tissue Papers
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	L/C
Purchasing :	L/C

PRODUCTION DETAILS OF TISSUE PAPERS

Particulars	Installed Capacity
Installed Capacity	20.00 Ton p.day
No of working days	300 p.a.
Total installed capacity	6000 Ton p.a.
Capacity Utilization	70% of installed capacity
Capacity utilized in Ton	4200 Ton p.a.
Average Selling price per ton
100% production semi processed	70 per kg

GENERAL INFORMATION

Suppliers :

Reference :	Century Pulp and Paper
Name of the Person :	Lalkua (Haldwani) Uttarakhand, India
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

• Indenting Agents are importing from Malaysia, Uzbekistan, Indonesia, China and Thailand etc.

Customers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

Not yet appointed

Bankers :

Bank Name	Oriental Bank of Commerce
Branch	Sitapura Branch, Jaipur, Rajasthan, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Salims Paper Private Limited
Account Number	Not Divulged
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Nil
Account Operation	Not Divulged
Remarks (If any)	The operations in the account is satisfactory.

Oriental Bank of Commerce, Plot No.5, Sector – 32, Institutional Area, Gurgaon – 122001, Haryana, India

Auditors :
Name :	Sanjay Pramod and Associates Chartered Accountants
Address :	110, Saraogi Mansion, M I Road, Jaipur – 302003, Rajasthan, India
PAN No.:	ACNFS1870P
Memberships :	---
Collaborators :	---
Group Firms :	Sanga Automobiles Private Limited Address : A -1, Pushp Enclave, Tonk Road, Jaipur, Rajasthan, India Line of Business: Dealer of Maruti.

CAPITAL STRUCTURE

AS ON 31.03.2015

Authorised Capital :

No. of Shares	Type	Value	Amount
10,000	Equity Shares	Rs.10/- each	Rs.0.100 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10,000	Equity Shares	Rs.10/- each	Rs.0.100 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2015	31.03.2014	31.03.2013
I.              EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	0.100	0.100	0.100
(b) Reserves & Surplus	(0.022)	0.000	0.000
(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)	0.078	0.100	0.100
(3) Non-Current Liabilities
(a) long-term borrowings	24.220	21.026	14.510
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	24.220	21.026	14.510
(4) Current Liabilities
(a) Short term borrowings	0.000	0.000	0.000
(b) Trade payables	0.037	0.003	0.000
(c) Other current liabilities	0.000	0.000	0.005
(d) Short-term provisions	0.001	0.000	0.058
Total Current Liabilities (4)	0.038	0.003	0.063
TOTAL	24.336	21.129	14.673
II.          ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	18.187	15.884	9.483
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	4.241	4.105	4.105
(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	0.000	0.000	0.000
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	22.428	19.989	13.588
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	0.000	0.000	0.000
(c) Trade receivables	0.000	0.004	0.004
(d) Cash and cash equivalents	0.159	0.910	1.069
(e) Short-term loans and advances	1.734	0.000	0.000
(f) Other current assets	0.015	0.226	0.012
Total Current Assets	1.908	1.140	1.085
TOTAL	24.336	21.129	14.673

PROFIT & LOSS ACCOUNT

	PARTICULARS	31.03.2015	31.03.2014	31.03.2013
	SALES
	Income	0.000	0.000	0.000
	Other Income	0.000	0.000	0.000
	TOTAL	0.000	0.000	0.000
Less	EXPENSES
	Other expenses	0.022	0.000	0.000
	TOTAL	0.022	0.000	0.000
Less	PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION	(0.022)	0.000	0.000
Less	FINANCIAL EXPENSES	0.000	0.000	0.000
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION	(0.022)	0.000	0.000
Less/ Add	DEPRECIATION/ AMORTISATION	0.000	0.000	0.000
	PROFIT/ (LOSS) BEFORE TAX	(0.022)	0.000	0.000
Less	TAX	0.000	0.000	0.000
	PROFIT/ (LOSS) AFTER TAX	(0.022)	0.000	0.000
	Earnings / (Loss) Per Share (Rs.)	(2.25)	0.00	0.00

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

Particulars	31.03.2015	31.03.2014	31.03.2013
Current Maturities of Long term debt	NA	0.000	0.000
Cash generated from operations	NA	NA	NA
Net cash flow from (used in) operations	NA	NA	NA

KEY RATIOS

PARTICULARS		31.03.2015	31.03.2014	31.03.2013
Net Profit Margin (PAT / Sales)	(%)	0.00	0.00	0.00
Operating Profit Margin (PBIDT/Sales)	(%)	0.00	0.00	0.00
Return on Total Assets (PBT/Total Assets}	(%)	(0.11)	0.00	0.00
Return on Investment (ROI) (PBT/Networth)		(0.28)	0.00	0.00
Debt Equity Ratio (Total Debt /Networth)		310.51	210.26	145.10
Current Ratio (Current Asset/Current Liability)		50.21	380.00	17.22

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2013	31.03.2014	31.03.2015
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	0.100	0.100	0.100
Reserves & Surplus	0.000	0.000	(0.022)
Share Application money pending allotment	0.000	0.000	0.000
Net worth	0.100	0.100	0.078
long-term borrowings	14.510	21.026	24.220
Short term borrowings	0.000	0.000	0.000
Total borrowings	14.510	21.026	24.220
Debt/Equity ratio	145.100	210.260	310.513

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	Yes
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	Yes
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)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	Yes
19	Major customers	No
20	Banking Details	Yes
21	Banking facility details	No
22	Conduct of the banking account	Yes
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	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	Yes
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

------------------------------------------------------------------------------------------------------------------------------

UNSECURED LOAN

PARTICULARS	31.03.2015 (Rs. in Million)	31.03.2014 (Rs. in Million)
Long-term Borrowings
Loan and Advances from Related Parties	24.220	21.026
Total	24.220	21.026
Note : Balance of Unsecured Loans are subject to confirmation. In the opinion of directors they represent exact amount and are considered good and fully payable in due course. Loans and Advances from Related parties includes interest free Advance received in the capacity of promoters/ directors contribution without stipulating specific terms and conditions regarding due date(s) for payment, rate of interest etc. However the Company has unconditional right to defer the payment as and when demanded for a period exceeding twelve months as per availability of funds with the company and therefore considered as long term borrowing.

------------------------------------------------------------------------------------------------------------------------------

DEBT SERVICE COVERAGE RATIO (DSCR)

(RS. IN MILLION)

Particulars	2016	2017	2018	2019	2020	2021	2022	2023
Profit After Tax	20.336	23.481	25.527	28.176	29.973	33.008	33.621	35.246
Depreciation	24.168	22.885	22.852	21.924	22.180	23.486	24.728	25.903
Interest on Term Loan	16.716	15.622	13.235	10.847	8.460	3.335	0.000	0.000
Total [A]	61.220	61.988	61.614	60.947	60.613	59.829	58.349	61.149
Interest on Term Loan	16.716	15.622	13.235	10.847	8.460	3.335	0.000	0.000
Repayment on Term Loan	0.000	17.052	17.052	17.052	17.052	17.052	17.052	17.088
Total [B]	16.716	32.674	30.287	27.899	25.512	20.387	17.052	17.088
A/B	3.66	1.90	2.03	2.18	2.38	2.93	3.42	3.58
Average DSCR :	2.76

------------------------------------------------------------------------------------------------------------------------------

STATEMENT OF BALANCE SHEET

(RS. IN MILLION)

Particulars	2016	2017	2018	2019	2020	2021	2022	2023
LIABILITIES
Shareholders Fund
Paid up capital	35.000	35.000	35.000	35.000	35.000	35.000	35.000	35.000
Reserve and Surplus	20.336	43.817	69.344	97.519	127.492	160.501	194.122	229.368
Loans
Term Loan – Secured	102.348	85.296	68.244	51.192	34.140	17.088	0.000	0.000
Un Secured Loans	50.790	50.790	50.790	50.790	50.790	50.790	50.790	50.790
Current Liabilities
Term Loans Installments due in next 12 months	17.052	17.052	17.052	17.052	17.052	17.052	17.088	0.000
CCH Limit	30.000	30.000	30.000	30.000	30.000	30.000	30.000	30.000
Sundry Creditors	11.000	11.200	11.700	12.200	12.500	13.000	13.500	13.500
Total	266.526	273.155	282.130	293.753	306.974	323.431	340.500	358.658
ASSETS
Fixed Assets
Plant and Machinery	137.055	117.991	101.578	87.449	75.285	64.813	55.798	48.036
Building	18.211	34.390	57.951	70.156	90.140	117.126	141.413	163.272
Land	15.755	15.755	15.755	15.755	15.755	15.755	15.755	15.755
Current Assets
Cash in Hand	18.573	21.203	10.385	14.656	20.780	20.723	22.520	23.652
Sundry Debtors	49.000	50.400	61.100	71.800	72.500	72.500	72.500	74.600
Security Deposits	1.790	1.790	1.790	1.790	1.790	1.790	1.790	1.790
Closing Stock	19.342	26.526	30.171	30.447	30.724	30.724	30.724	31.553
Pre-Operative Expenses	6.800	5.100	3.400	1.700	0.000	0.000	0.000	0.000
Total	266.526	273.155	282.130	293.753	306.974	323.431	340.500	358.658

------------------------------------------------------------------------------------------------------------------------------

STATEMENT OF COST OF THE PRODUCTS AND PROFITABILITY

(RS. IN MILLION)

Particulars	2016	2017	2018	2019	2020	2021	2022	2023
Capital Utilized	70%	72%	73%	74%	75%	75%	75%	78%
Sales
Sales (in Qty.) (M. Ton.)	4200	4320	4380	4440	4500	4500	4500	4500
Sales Realization	294.000	302.400	306.600	310.800	315.000	315.000	315.000	327.600
Total Sales	294.000	302.400	306.600	310.800	315.000	315.000	315.000	327.600
Expenses
Raw Material Purchases	154.737	159.158	161.368	163.579	165.789	165.789	165.789	172.421
Electricity and Water Expenses	25.200	25.920	26.28	26.640	27.000	27.000	27.000	28.080
Salary and Wages	13.000	13.390	13.791	14.205	14.631	15.070	15.522	15.988
Depreciation	24.168	22.885	22.852	21.924	22.180	23.486	24.728	25.903
Packing Material Stores and Consumables	3.210	3.302	3.348	3.393	3.439	3.439	3.439	3.577
Selling and Distribution Expenses	15.650	16.120	16.603	17.101	17.614	18.143	18.687	19.248
Repair and Maintenance Expenses (4% of Cost)	6.368	6.559	6.756	6.958	7.167	7.382	7.604	7.832
Pre-Operative Expenses w/off	1.700	1.700	1.700	1.700	1.700	0.000	0.000	0.000
Interest on Term Loans	16.716	15.622	13.235	10.847	8.460	3.335	0.000	0.000
Interest on working capital	4.200	4.200	4.200	4.200	4.200	4.200	4.200	4.200
Total	264.948	268.855	270.133	270.548	272.181	267.845	266.970	277.248
Net Profit	29.052	33.545	36.467	40.252	42.819	47.155	48.030	50.352
Provision for Taxation	8.716	10.064	10.940	12.076	12.846	14.147	14.409	15.106
Net Profit After Tax	20.336	23.481	25.527	28.176	29.973	33.008	33.621	35.246
Net Cash Accruals	46.204	48.066	50.079	51.800	53.853	56.494	58.349	61.149

------------------------------------------------------------------------------------------------------------------------------

CASH FLOW STATEMENT

(RS. IN MILLION)

Particulars	2016	2017	2018	2019	2020	2021	2022	2023
Sources of Cash
Net Cash Accruals	46.204	48.066	50.079	51.800	53.853	56.494	58.349	61.149
Increase in Share Capital / Unsecured	--	--	--	--	--	--	--	--
Increase in Term Loans	--	--	--	--	--	--	--	--
Increase in Current Liabilities	41.000	0.200	0.500	0.500	0.300	0.500	0.500	0.500
Decrease in Current Assets	--	--	--	--	--	--	--	--
Total	87.204	48.266	50.579	52.300	54.153	56.994	58.849	61.149
Application of Cash
Plant and Machinery	--	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Building Construction	--	20.000	30.000	20.000	30.000	40.000	40.000	40.000
Land Purchased	--	--	--	--	--	--	--	--
Pre-operative Expenses	--	--	--	--	--	--	--	--
Repayment of Term Loans	0.000	17.052	17.052	17.052	17.052	17.052	17.052	17.088
Increase in Current Assets	70.132	8.584	14.345	10.976	0.976	0.000	0.000	2.929
Decrease in Current Liabilities	--	--	--	--	--	--	--	--
Drawings	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000
Total	70.132	45.636	61.397	48.028	48.028	57.052	57.052	60.017
Opening Balance	1.501	48.573	21.203	10.385	14.657	20.782	20.724	22.521
Surplus of the year	17.072	2.630	(10.818)	4.272	6.125	(5.800)	1.797	1.132
Closing Balance	18.573	21.203	10.385	14.657	20.782	20.724	22.521	23.653

------------------------------------------------------------------------------------------------------------------------------

CALCULATION OF RATIO

(RS. IN MILLION)

Particulars	2016	2017	2018	2019	2020	2021	2022	2023
Debt Equity Ratio
Total Outside Liabilities (Long Term) [A]	153.138	136.086	119.034	101.982	84.930	67.878	50.790	50.790
Total Equity/ Capital / Contribution [B]	55.336	78.817	104.344	132.519	162.492	195.501	229.122	264.368
[A/B]	2.77	1.73	1.14	0.77	0.52	0.35	0.22	0.19
Average Debt Equity Ratio	0.96
Current Ratio
Current Assets [A]	86.915	98.129	101.656	116.903	124.004	123.947	127.534	131.595
Current Liabilities [B]	58.052	58.252	58.752	59.252	59.552	60.052	43.500	43.500
[A/B]	1.50	1.68	1.73	1.97	2.08	2.06	2.93	3.03
Average Current Ratio	2.12
Profit before depreciation, tax and interest	69.936	72.052	72.554	73.023	73.459	73.976	72.758	76.255
Total Investment (Capital + Unsecured loans + Term loans )	208.474	214.903	223.378	234.501	247.422	263.379	279.912	315.158
Internal Rate of Return (Profit before depreciation, tax and interest)	34%	34%	32%	31%	30%	28%	26%	24%

------------------------------------------------------------------------------------------------------------------------------

NETWORTH STATEMENT

MR. AMINUDDIN KAGZI

AS ON 31.03.2015

(RS. IN MILLION)

PARTICULARS	AMOUNT
Fixed Assets
Plot No.1/280 (3000 sq. ft.) at Gramudyog Road, Sanganer , Jaipur (own Share)	36.950
1/2 share in resort/ guest house at Gramudyog Road, Sanganer , Jaipur	20.000
A-46, Kagzi Mohalla, Sanganer	5.000
Movable Assets
Misc. Current assets fdr, jewellery, investment in business	2.155
Total	64.105

------------------------------------------------------------------------------------------------------------------------------

NETWORTH STATEMENT

MR. NIZAMUDDIN KAGZI

AS ON 31.03.2015

(RS. IN MILLION)

PARTICULARS	AMOUNT
Fixed Assets
Plot no.1/280 (3000 sq. ft.) at Gramudyog Road, Sanganer , Jaipur (own Share)	36.950
1/2 share in resort/ guest house at Gramudyog Road, Sanganer , Jaipur	20.000
New House at kagzi mohalla	13.200
A-46, Kagzi Mohalla, Sanganer	5.000
Movable Assets
Misc. Current assets fdr, jewellery, investment in business	2.455
Total	77.605
Less : Liability
Housing Loan	8.200
Total	69.405

------------------------------------------------------------------------------------------------------------------------------

NETWORTH STATEMENT

MR. RIYAZUDDIN KAGZI

AS ON 31.03.2015

(RS. IN MILLION)

PARTICULARS	AMOUNT
Investment in Business and Misc. Assets	0.437
Total	0.437

------------------------------------------------------------------------------------------------------------------------------

NETWORTH STATEMENT

MR. KALIMUDDIN KAGZI

AS ON 31.03.2015

(RS. IN MILLION)

PARTICULARS	AMOUNT
Investment in Business and Misc. Assets	0.446
Total	0.446

------------------------------------------------------------------------------------------------------------------------------

NETWORTH STATEMENT

MR. ZAINUDDIN KAGZI

AS ON 31.03.2015

(RS. IN MILLION)

PARTICULARS	AMOUNT
Investment in Business and Misc. Assets	0.413
Total	0.413

------------------------------------------------------------------------------------------------------------------------------

NETWORTH STATEMENT

MR. AHTESHAMUDDIN KAGZI

AS ON 31.03.2015

(RS. IN MILLION)

PARTICULARS	AMOUNT
Investment in Business and Misc. Assets	0.495
Total	0.495

------------------------------------------------------------------------------------------------------------------------------

PROJECT REPORT ON TISSUE PAPERS

LOCATED AT

PLOT NO. SP-6, INDUSTRIAL AREA, SKS REENGUS (EXTENSION), SIKAR (RAJASTHAN)

PROJECT – GENESIS

Name of the Industry : TISSUE PAPERS

Statement of Installed Capacity and estimated utilization

Products Mix and Installed Capacity

Installed Capacity	20.00 Ton p.day
No of working days	300 p.a.
Total installed capacity	6000 Ton p.a.
Capacity Utilization	70% of installed capacity
Capacity utilized in Ton	4200 Ton p.a.
Average Selling price per ton
100% production semi processed	70 per kg
Total Sales realization
100% production semi processed	Rs.294.000 Million

IMPORTANT PARAMETERS:

Process Technology	INDIGENOUS
Location of site	Plot No. Sp-6, Industrial Area, SKS Reengus (Extension), Sikar (Rajasthan)
Machinery Suppliers	Indigenous machinery / Imported Equipments from Reputed/standard suppliers/ Fabricators
Power Requirement	800 KW (Contract Demand)
Employment Potential	93 Nos
Commencement of Production	April, 2016
D.S.C.R ( Avg )	3.01
I.R.R. (Pre Tax)	30%
Break Even point	38% of Installed capacity
Cash Break Even point	33%
Repayment Period	7 years after moratorium period of 12 months

INTRODUCTION AND BACKGROUND

INTRODUCTION

Salims Paper Private Limited, a family owned private limited company, was incorporated on 05th day of May 2011 vide company registration no. U21093RJ2011PTC035076 has its registered office located at 1/282, Gram udyog Road, Sanganer, Jaipur.

The company is promoted by Shri Aminuddin Kagzi, Shri Nizamuddin Kagzi, Shri. Kalimuddin Kagzi, Shri Riyazuddin Kagzi with the Registrar of Companies Rajasthan, keeping in view its main objective of Manufacturing of Handmade Paper in the Sanganer area.

To establish the manufacturing unit, the company has applied for allotment of industrial land at Shri Kathu Shyam industrial area, Ringus (Extension) District Sikar, in the month of August 2011, RIICO has allotted an industrial plot admeasuring 36068.45 Sq. meters in the desired area to setting up craft and Tissue paper unit.

The Company is planning to set up Tissue papers manufacturing plant at Plot No. SP-6, Industrial Area, SKS, Industrial Area Reengus (Extension), Sikar, for manufacturing of Tissue papers with an installed Capacity of 6000 MT P.A.

M/s. SALIMS PAPER PRIVATE LIMITED intends to avail Term Loan and Working Capital assistance from Banks/Financial Institutions for financing the proposed project.

SWOT ANALYSIS

An analysis of Strengths, Weaknesses, Opportunities and Threats (SWOT) of the project has been made and a few highlights of the same are given below:

STRENGTHS AND OPPORTUNITIES

The major strengths of the Company are that it has a diverse market with customers in India as well as abroad and the value added tissue papers which are made available as per the customer needs.

The increasing demand for the Tissue papers due to industries such as Hotels, Restaurants, offices, daily house hold uses, among others switching over to Tissue papers gives strength and confidence to the company for bouncing back in the coming years.

European and Gulf countries are the major consumers of Tissue papers in the world. They were also major manufacturers in the world, but due to high cost of man-power, European countries had slowly moved towards Eastern Europe and US towards Mexico to sustain their costs, even there the cost have gone up, due to which there has been a continuing shift to South Asian Countries.

Global demand is seeing a rapid growth and the upward trend is likely to continue for a years to come. Tissue papers manufacturing companies in the South Asian Countries are emerging as major players exporting to the global markets, since Tissue paper is a labour intensive product. These trends augur well for the growth in the paper industry.

PROMOTER’S BACKGROUND AND MANAGEMENT

PROMOTERS/DIRECTORS

PROMOTERS

The Company "Salims Paper Private Limited” incorporated on 05.05.2011 for the purpose of setting up the Project for Manufacturing of Tissue Papers at Plot No. SP-6, Industrial Area, SKS, Industrial Area Reengus (Extn.), Sikar. The Board of Directors consists of following Persons as on date 28/03/2013;

1. Mr. Aminuddin Kagzi

2. Mr. Nizamuddin Kagzi

3. Mr. Kalimuddin Kagzi

4. Mr. Riyazuddin Kagzi

5. Mr. Zainuddin Kagzi

6. Mr. Ahteshamuddin kagzi

KEY PROMOTERS

All the directors of the firm will handle the affairs of the company. The details of each director are as under:

MANAGEMENT

Mr. Aminuddin Kagzi

Mr. Aminuddin Kagzi s/o Mr. Salimuddin Kagzi [42 Years] is graduate from Rajasthan University. He is dynamic in various fields of business and has extensively toured abroad for business development. He is well acquainted in finance management, technical management, and behavioral aspects and for the years together is engaged in handmade paper products. He is pioneer in inventing new handmade products and is well versed in production and quality control management. He has travelled abroad extensively for marketing and finding out new machinery to increase the production. He is fluent in English and has ascents of meeting with foreign delegates and prospective buyers abroad and in India.

Mr. Nizamuddin Kagzi

Mr. Nizamuddin Kagzi [50 Years] s/o Mr. Salimuddin Kagzi is B.Sc. from Rajasthan University and is well versed in technical aspects and is connoisseur of construction work and finance management. He has been associated with Kumarappa Institute for so many years and is well versed in handmade paper products. He is technically sound in subtleness of production and is result oriented in respect of quality management and other aspects of running a large scale and medium scale unit. He has toured abroad extensively for marketing the products and is well known about new technical aspects and machinery.

Mr. Kalimuddin Kagzi

Mr. Kalimuddin Kagzi s/o Mr. Islamuddin Kagzi age 26 Years is graduate and is well versed in art and skill of manufacturing handmade paper. He is inculcated processing intricacy in procurement of Raw Materials and labour management and is potential in marketing of products.

Mr. Riyazuddin Kagzi

Mr. Riyazuddin Kagzi s/o Mr. Bashiruddin Kagzi is having vast knowledge of marketing and production of handmade paper /tissue paper and other related products. He is qualified in finance management and also labour management.

GROUP FIRMS DETAILS

Sanga Automobiles Private Limited

Sanga Automobiles Private Limited was established in January 2008 to run dealership of Maruti passenger cars, the company has shown tremendous growth in last four years; company has Maruti showroom and well equipped workshop in Sanganer to cater the demand of area, the company is managed by the following directors:

Mr. Aminuddin Kagzi

Mr. Kalimuddin Kagzi

Mr. Nizamuddin Kagzi

Mr. Riyazuddin Kagzi

Company has booked sales of Rs.1210.000 Million in 2015.

STEPS UNDERTAKEN FOR PROJECT IMPLEMENTATION

The Firm has been incorporated as a Private Limited Company

The Company has applied for necessary Govt. Approvals for the Project-viz Single Window Clearance, Power Availability, NOC–Pollution Control Board

Power Connection of 800 KW required for the Project is being applied for.

The firm has already identified Main Plant, Machinery and Equipments, and is in the process of placing Orders. The company has decided to give entire contract of plant and machinery to M/s Rajiv Machinery Private Limited On turnkey basis, so that quality control is there.

The construction works at the site has been started and tentatively it will be completed by October 2015.

PROJECT PARTICULARS

PROJECT BACKGROUND AND PARTICULARS

Nature of Project

The project envisages production facilities with the International Environment Norms while implementing the Tissue papers manufacturing unit.

Product and Product Mix

Tissue paper is a thin, relatively strong, translucent paper made for use in crafts as well as for wrapping and other applications. Tissue papers are very thin and smooth disposable papers which are one of the most used items in their daily life. As normal papers tissue papers are also made up of wood pulp.  The basic raw material for tissue paper manufacturing is soft/hard wood pulp. The main supplier of raw materials are Century Pulp and Paper, Lalkua (Haldwani) Uttaranchal and Indenting Agents are importing from Malaysia, Uzbekistan, Indonesia, China and Thailand etc.

Tissue papers are widely used and their uses are given as under

Hygienic Tissue Paper: Hygienic tissue papers are generally used for keeping their surroundings hygienic. For example we use these tissue papers in restaurants, hotels, dining rooms etc.

Facial Tissue: Facial tissues are thin, smooth and absorbent paper which suits for cleaning the face. Facial tissues are also called as paper handkerchiefs or wipes.

Paper Towels: In different kinds of tissue papers, paper towels are the second mostly used tissue papers. Paper towels are durable. To get this durability they use 100 percent chemical to 100 percent recycled fiber.  

Toilet Paper: In western countries toilet tissues are used instead of water.

Table Napkins: Table napkins are generally used in dining tables. These are available in different colors, folds and sizes.

PERIOD OF OPERATION AND INSTALLED CAPACITY

Tissue Papers: The unit is a Tissue papers manufacturing units, is expected to operate for an effective period of 300 days in a year on 24 hours per day basis. On this basis, the effective installed capacity of the plant works out at 6000 MT of Tissue papers per annum. The basis for calculation of plant capacity is given in project report.

Capacity Utilization

The details of capacity Utilization during the first three years of operations after establishment are given in project report. The capacity utilization is assumed, deliberately on conservative level, as it may face the initial teething problems. The annual production at optimum capacity utilization at 75% in V year of operation is envisaged for Tissue Papers.

MANUFACTURING PROCESS

Manufacturing of Tissue papers involves various types of key steps. Here in this process the soft/hard wood pulps which are the basic raw material is being converted in to a Tissue papers after undergoing various lines of process. The total process involved is of 11 steps. The brief note is being below mentioned regarding major step.

Pulping and Retting

Soft tissue paper comes in varying thicknesses and textures but is mainly manufactured for facial tissue, bath tissue, paper towels, napkins and sometimes packing tissue. The first step in the process of making soft tissue paper is creating paper pulp, which can be generated from recycled materials or new ones. Tissue-paper manufacturers create their pulp by stirring together retted (soaked and pulled apart) tree fibers in a large vat. The type of tree fiber and how much water is mixed in depends on the particular product being made.

Pressing

Once the pulp is ready, it is pressed through two pressure rolls so that a majority of the moisture is squeezed out. Sometimes the pulp might be pressed only between two rolls for thicker paper, and other times it may undergo the pressure of multiple rolls for thinner paper. This leaves the pulp in a manageable consistency for the next step, which will completely dry it out and scrape it down to a thin sheet.

Creping

The pulp is processed with a Yankee dryer, a drying cylinder heated by steam. This dryer puts the pulp through a process called creping; hence the term "crepe paper." The hood above the roller dries the pulp with a forceful heat as the roller turns and a fine blade scrapes the tissue down to the soft, desired thickness. The tissue does not get completely scraped away, because the roller is first sprayed with adhesives.

Reeling and Cutting

The long length of paper is reeled and cut with a machine, such as the Advantage SoftReel, into appropriate lengths and sections after it is dried and thinned. Throughout the process of making soft tissue paper, there are times when the fibers are exposed to extreme heat. To keep the fibers from igniting, technology such as Metso's Advantage WetDust is used to keep eliminate air born dust from the area and keep the tissue machines clean.

LOCATION

Generally Location is a word always followed by availabilities of Infrastructure facilities such as Power, Raw Material, Labour, Transportation, Government Facilities if available and marketing etc.,

After careful consideration and thought, the directors have decided to undertake new unit at Reengus (Extn.), in the Sikar district of Rajasthan which is strategically positioned on the Western Dedicated Freight Corridor project of the Indian Railways, thus providing direct connectivity to the ports of Kandla, Mundra, Pipavav and Nhava Sheva. This shall provide them with efficient logistics thereby reducing their transportation and raw material cost as compared to their competitors in land locked Northern India.

M/s Salims Paper would be the first of its kind manufacturing plant in Rajasthan dedicated at manufacturing Tissue papers. The hotel, restaurant, household need and almost each and every offices of Rajasthan requires tissue papers on a regular basis and is at present dependent on manufacturers outside the state. This provides them with a unique opportunity to cater to this segment.

LAND

The company had purchased the Industrial land having area of 36068.45 sq. mtr. at at Plot No. SP-6, Industrial Area, SKS, Reengus (Extn.), Sikar. The land is near to the National Highway and other industrial units are also established in the vicinity. The total cost of the land & site development has been taken at Rs.18.580 Million.

BUILDING AND OTHER CIVIL WORKS

The civil works of the unit could be grouped broadly as under:

Factory Hall, Office Block, Raw material Godown, Finished Goods Godown, Guard Room, Meter Room and compound Wall, etc.

The preliminary specifications of various production sections and other sections have been given by an Architect who has already prepared design and drawing of the building. The building constructed with a covered area of 37504.00 sq. ft. house necessary items of machinery/equipment, stores for raw material and finished goods, packing area etc. The area will also have space for storage of work-in-process stock and auxiliary and service equipment, etc. Taking into account the prevailing cost of construction in the area, requirement of other conditions for the tissue paper industry, the cost of the construction of the building works out to Rs 29.169 Million. The cost of other civil jobs pertaining to underground water storage tank, sanitary fittings, architect's fees, etc. are included in the above cost. The type of construction will be mainly RCC/ACC roofing, brick masonry work with plaster.

Plant and Machinery

The company has decided to given entire contract of procurement and installation of plant and machinery to M/s Rajiv Machines Private Limited,Gaziabad (UP) , a very experience company in installation of paper machines, on turnkey basis. This will help us to control quality of the machines, their proper installation and working.

The machines selected shall be able to produce Tissue papers in the range of 14 GSM to 36 GSM. The finishing section has been designed to manufacture Reels or cut looms. The production of tissue papers consists of 75% Reels and 25% finished product tissue papers. Company shall have the capability to manufacture these products in any colour and specification based on customer requirement.

Company’s proposed machinery for the project is based on the most modern and latest technology available anywhere in the world for manufacture of Tissue papers. These modern machines combined with the online computer controlled testing machines would help them in reducing material gauge variations in the products and obtaining better quality finished products.

Further to ensure that each of company’s products shall pass through stringent quality checks and the quality assurance measures proposed by them would include thorough checking of all raw materials, other inputs and finished goods to ensure the desired quality, statistical methods to identify and analyze areas of improvement, creation of data base for future reference and analysis, etc. They have chosen an array of professional quality control equipments for testing quality at every step of the production process.

Miscellaneous Fixed Assets

Miscellaneous fixed assets includes the tools and equipments, computer and basic furniture and fixture required for the factory premises, Fire Fighting and Electrical panel, Transformer, generators etc.

The cost of proposed miscellaneous fixed assets works out to Rs.8.500 Million.

Pollution Control System

The Company is committed to the Environment Protection and has provided for Effluent treatment and management of air pollution and waste water and solid waste disposal keeping in view of the Environment Health and Safety. It is emphasized that air pollution system shall be best in the Industry.

Effluent

The company has proposed to install ETP/STP plant for effluents will come out from the plant, and gases from the reheating furnace will come out which will be thrown away out of the permissible limit of atmosphere. The Company will get the No objection Certificate from Pollution Control Board before disbursement of loan.

Raw Materials and Consumables

RAW MATERIAL FOR TISSUE PAPER IS AS FOLLOWS

(i) Hardwood Pulp

(ii) Soft wood Pulp

DAILY REQUIREMENT

(i) 450 Ton / Month Hardwood + Softwood Pulp

YIELD

95% from Softwood / Hardwood Pulp

SUPPLIER

(i) Century Pulp & Paper, Lalkua (Haldwani) Uttarakhand.

(ii) Indenting Agents are importing from Malaysia, Uzbekistan, Indonesia, China and Thailand etc.

Raw materials and consumables are available from open markets.

Utilities

Electric Power

The unit is proposed to consume 800 K.W. for Tissue papers manufacturing unit. As the unit will be established in the developed area whereby other industrial units are already working the required electricity infrastructure are available for providing the smooth supply of electricity. Therefore the power connection of required load would be available easily. The necessary application will be moved for released of connection have been in due course.

Water

Provision has been made for bore well. Water requirement of the plant would be met from tube well. Water required for drinking water and for sanitation purpose is also available in abundance in nearby areas.

Man Power

The total man power requirement has been estimated at 93 persons.

The Labor both skilled and unskilled is easily available locally. Further the technical staff has been identified.

COST OF THE PROJECT

(RS. IN MILLION)

The cost of the Project for setting up the proposed plant is estimated at Rs. 245.531 Million. The broad break-up of the above cost under various heads is given below:-

Particulars	Already incurred	To be incurred	Total	% of total Project	Promoters margin	Finance Request
Land	18.580	0.000	18.580	7.57%	100.00%	0.000
Plant & Machinery	0.000	159.200	159.200	64.84%	25.00%	119.400
Building	4.676	24.493	29.169	11.88%	25.00%	21.877
Mis. Fixed Assets	0.000	5.500	5.500	2.24%	25.00%	4.125
Margin for Working Capital	0.000	18.368	18.368	7.48%	100.00%	0.000
Provision for Contingencies	0.000	6.214	6.214	2.53%	25.00%	4.661
Pre-operation Expenses	0.012	8.488	8.500	3.46%	100.00%	0.000
Grand Total	23.268	222.263	245.531	100.00%		150.062

LAND AND SITE DEVELOPMENT:

The company had leased out Industrial land for 99 years from RIICO for manufacturing of Tissue papers. The total admeasuring area of land 36068.45 sq/ meter at Shri Kathu Shyam industrial area, Ringus (ext.) district Sikar. The land is near to the National Highway and other industrial units are also established in the vicinity. The total cost of the land and site development has been taken at Rs.18.580 Million.

BUILDING AND OTHER CIVIL WORKS (RS. 29.169 MILLION):

The civil works of the unit could be grouped broadly as under:

Factory Hall, Office Block, Raw material Godown, Finished Goods Godown, Guard Room, Meter Room and compound Wall, etc.

The preliminary specifications of various production sections and other sections have been given by an Architect who has already prepared design and drawing of the building. The building constructed with a covered area of 37504 sq. ft. house necessary items of machinery/equipment, stores for raw material and finished goods, packing area etc.

The type of construction will be mainly RCC/ACC roofing, brick masonry work with plaster. The construction of the yet not be started. The details and cost of building and other civil works is estimated at amounting Rs.29.169 Million.

PLANT AND MACHINERY (RS. 159.200 MILLION):

The company has decided to give contract of procurement and installation of entire plant and machinery to M/s Rajiv Machines Private Limited, Gaziabad, on turnkey basis.

The Machines chosen are the best machines from the undisputed leader in the market. All other auxiliary and ancillary machines are of reputed manufacturers in India/abroad. The machines selected shall be able to produce tissue papers in the range of 14GSM to 36 GSM. The costs of Plant and Machinery work out to Rs.159.200 Million.

MISCELLANEOUS FIXED ASSETS (RS. 5.500 MILLION):

Misc. fixed assets includes the tools and equipments, Transformers, DG Sets, computer and basic furniture and fixture required for the factory premises.

The cost of proposed misc. fixed assets works out to Rs. 5.500 Million.

PRELIMINARY AND PRE-OPERATIVE EXPENSES (RS.8.500 MILLION):

The proposed pre-operative expenses include establishment and traveling expenses during construction period, printing, stationary, telephone, etc., insurance during construction period, interest during construction period, legal, and consultancy fee, and other expenses.

MARGIN MONEY FOR WORKING CAPITAL (RS. 18.368 MILLION):

The margin money for working capital during the 2016-17 is estimated at Rs. 18.368 Million and is provided in Cost of project.

The assumption made while calculating the working capital margin is based on the following norms:

Particulars	Inventory Period (Days)	Margin Requirements
Raw Materials	30	25%
Consumables	40	25%
Finished Goods	26	25%
Work in Process	17	25%
Receivables	40	25%

On the basis of above, the net working capital requirement, Margin Money and Working Capital Loan of the project for the first year of operation works out to Rs. 50.000 Million.

The fund based bank borrowings towards working capital of the unit based upon the Ist year of operation and IInd year of operation work out to Rs 50.000 Million.

MEANS OF FINANCE

(RS. IN MILLION)

The cost of project estimated at Rs. 245.531 Million is proposed to be financed as under:-

Particulars	Already arranged for	to be arranged for	Total	% of total [Project]
Share Capital	0.100	34.900	35.000	14.25%
Unsecured Loans	23.168	37.263	60.431	24.61%
Term Loan	0.000	150.100	150.100	61.13%
Grand Total	23.268	222.263	245.531	100.00%

PROMOTERS’ CONTRIBUTION AND DEBT EQUITY RATIO:

Cost of project is Rs. 245.531 Million, which is to be funded on a debt equity ratio of 1.57:1. Debt funding would be by way of Rupee term loan of Rs. 150.100 Million, while the contribution of Rs. 35.000 Million would be through Share capital and Rs.60.431 Million as an Unsecured Loans from friends and relatives.

TERM LOAN (RS. 150.100 MILLION)

It is proposed to avail financial assistance from the bank to partly meet the funds requirements by way of term loan assistance of Rs. 150.100 Million, which constitutes 61.13% of the total cost of project.

Term loan is proposed to be repaid in 84 monthly installments within a span of 7 years in addition to a moratorium of 12 months; the first installment begins from April, 2016.

MARKETS AND DEMAND

BUSINESS PROSPECTS

Product

The unit is proposing to manufacture Tissue papers. Company’s proposed product portfolio comprises of Tissue papers with a range from 14 GSM to 36 GSM. It can cater to a variety of living style requirements of customers across various industry segments. It’s versatile equipment capability is one of its principal strengths.

The product is having good prospect keeping in view the country’s as well as outside India.

Product Introduction – Tissue Papers

Hygiene is an essential component of healthy living, integral to achieving health and preventing disease. Not just selecting the right food choices but also cooking and consuming them in a hygienic way is equally important in preventing the infectious diseases. Adopting hygienic practices and promoting hygiene in the community, schools and workplace prevents innumerable infectious disease. The hygiene-related products are an important part of their daily life. These products promote a hygienic lifestyle. These include automatic deodorizers, tissue paper, ecofriendly tissues and towels, disinfectant and sanitizers. The major hygiene products tissues include facial tissues, toilet rolls, napkins and serviettes, kitchen towels, cleaning solutions, hand sanitizer, wet wipes, liquid hand wash etc. In a modern age people are more prone to sophisticated mode of maintaining health and hygiene conditions of their body through the contiguous of cosmetics and their allied measure. This is an elegantly achieved by the application of wet face freshener tissue. This is very economical item and portable. It can be easily carried in pocket while going in a car, rail, and flight. Tissue paper is often used for direct inside part wrapping as in jewellery, liquor, fruit and florist trade, various other tissue papers are used for specific purpose. Napkins are manufactured from tissue paper are becoming popular with catering industry due to its manifold uses. These are absorbent, hygienic, and light and can be held with attractive printing. There are many kinds of raw material which can be used in the production of tissue paper such as wood pulp or sorted waste paper, cellulose pulp from straw, linen, cotton and rags, jute etc. Facial tissue paper through recently introduced in Indian market is fast becoming popular with the public. The following brief utility of paper napkin obtained from tissue paper may be enumerated. The potential for growth in the personal care hygiene sector is huge. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income are some of the key social drivers thus giving a strong signal to the possibility of Indian personal care industry realizing its huge potential in the near future. Now-a-days the demand of tissue paper is increasing day by day, so there is wide scope for new entrepreneurs to venture into this project.

Indian paper and newsprint industry has a huge potentials and prospects in coming future. In their, country, demand for paper and newspaper is rapidly increasing. There are vast demands in the area of tea bags, filer paper, tissue paper, medical-grade coated paper, lightweight online coated paper, etc.

Indian paper industry is one of the underestimated industries for quite some time because India's per capita consumption of paper is just about 5 kg. Whereas it is 337 kg in North America, 110 kg in Europe and 30 kg in China. Compared to this scenario, India' par capita consumption is one of the lowest in the World.

The Rs.220000.000 Million paper industry in India, rated 15th largest in world engages about 1.500 million people with the help of Rs.25000.000 Million Government subsidy. Government has given paper industry as one of the 35 high-priority lists.

There are about 515 manufacturing units of processing and production of paper. Newsprint and paperboards in India which have the annual capacity of 8.3 million tonnes, is likely to be 16.000 million tonnes by 2014. There are few state owned and private players in the emerging paper industry like Hindustan Newsprint Limited (HNL), Tamilnadu Newsprint and Papers Limited (TNPL), Ballarpur Industries Limited (BUILT), Seshasayee Paper and Board Limited (SPBL), ITC Paper.

Virtually paper industry is decontrolled and there is no price control on finished product. As a result entire cost has shifted upon the end-users. Newsprint prices increase sharply by 24% in a short span of three months to touch a high of $760 per ton, an increase of $145 since December 2007. India also, imports bulk of newsprint from foreign countries. From North America we have imported 1.890 Million tonnes in 2004 to 2.645 Million tonnes in 2007, a CAGR of 11.9%.

Domestic consumption move up by 0.640 Million tonnes to 0.970 Million tonnes, a CAGR 14.9%, while import went up by 1.250 Million tonnes to 1.675 Million tonnes, a CAGR of 10.3%.

Indian handmade paper industry is a vast industry comprising more than 157 handmade paper-producing divisions all over India. These 157 functional units together manufacture paper worth around Rs. 210.000 Million and provide employment to 10,000 people.

MARKETING AND SELLING ARRANGEMENTS

Tissue Papers industry in India is Domestic as well as export driven with more than 50% of production being channeled overseas. A simultaneous marketing effort would be undertaken to target certain countries where associate concern does not have a presence. They have already approached several bulk importers of Tissue papers in Gulf countries, etc. all of whom have shown their willingness to source some of their quantities from them subject to techno-commercial terms matching their present suppliers. Accordingly the company will achieve its targeted sales.

In view of the anticipated demand, the proposed unit is not likely to face any problem in getting orders for the products envisaged to be produced by the company.

FINANCIAL VIABILITY AND PROJECTED PROFITABILITY

PROJECTED PROFITABILITY ESTIMATES

The projected estimates of cost of production and profitability for the first Eight years of operation are given in attached project report. The following are the main assumptions made while working out these estimates:

The Unit will operate for 300 days in a year on 24 hours/3 shifts /day basis for the basic operations i.e. Manufacturing of Tissue papers.

Capacity utilization has been assumed to 70% in 1st year of operation to 75% by Vth year of operation.

The details of production programme and sales realization are given in project report. The sale prices are ex-works excluding taxes and duties and are considered at Rs. 100,000/- per ton for fully processed Tissue papers product and Rs. 70,000/- per ton for semi processed tissue Reels.

The Cost of raw materials and consumables include miscellaneous taxes and freight charges up-to the plant site.

The cost of utilities like power and fuel has been taken into account as given in project report

Provision for repairs and maintenance has been taken Rs. 7.755 Million and an increase of 3% over second year cost repair and maintenance cost and in the subsequent years

Annual wages/salaries bill has been estimated on the basis of man power requirement of the unit. A detailed break-up of manpower and wages/ salaries proposed to be paid to each category has been given at in project report. An increment of 3% over first year’s wages has been provided in the wages/salaries bill in the subsequent years.

Interest on Term loan and Working Capital borrowings has been taken @ 14% per annum. The details of interest calculation in respect of Term loan and Repayment are given in project report

Depreciation has been calculated on Written down Value (WDV) Method for calculation of Income tax

The selling and administrative expenses have been estimated at Rs.16.805 Million of Total sales.

Profitability

It may be seen from the profitability estimates that the unit would start earning a Net profit (after tax) of Rs. 36.840 Million in the Ist year of operation at 70% capacity utilization of the installed capacity. The Net profit will increase to Rs. 51.250 Million in the vth year when the unit expects to achieve optimum 75% capacity utilization of the installed capacity.

FINANCIAL PERFORMANCE INDICATORS

Based on the above assumptions, the financial ratios and performance indicators of the project during the Vth year of operation at 75% Capacity Utilization are as under:-

(RS IN MILLION)

Total Revenue	348.750
Profit Before Tax	73.215
Net Profit After Tax	51.250
Debt Equity Ratio	0.83
D.S.C.R. (Avg)	3.01
Break Even Point	38%
IRR before Tax	33%

------------------------------------------------------------------------------------------------------------------------------

Index of charges: No Charges Exist for Company

------------------------------------------------------------------------------------------------------------------------------

FIXED ASSETS

Tangible Assets

• Leasehold Land
• Freehold Land
• Factory Building
• Car
• Computer
• Furniture
• Office Equipment
• Plant and Equipment

Intangible assets

• Goodwill
• Brand / Trade marks
• Computer Software
• Mining rights
• Title
• Intellectual property

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.66.37
UK Pound	1	Rs.102.54
Euro	1	Rs.75.32

INFORMATION DETAILS

Information Gathered by :	SVA
Analysis Done by :	KAS
Report Prepared by :	SNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILITY	1~10	1
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		12

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.