MIRA INFORM REPORT

Report Date :

13.12.2008

IDENTIFICATION DETAILS

Name :	ROYAL TOUCH FABLON PRIVATE LIMITED
Registered Office :	4 Synagogue Street, w.e.f. 23.05.2000, P S Hare Street, Kolkata – 700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	02.12.1999
Com. Reg. No.:	21-90687
CIN No.: [Company Identification No.]	U19202WB1999PTC090687
TAN No.: [Tax Deduction & Collection Account No.]	CALR03058G
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Bags and Liners.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 490000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having fine track. Available information indicates satisfactory financial responsibility of the company. General financial position is good. Trade relations are fair. Business is active. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Mr. Ashish Sharma
Designation :	Exports Manager
Contact No.:	91-9831660117
Date :	23.04.2008

LOCATIONS

Registered Office :	4 Synagogue Street, w.e.f. 23.05.2000, P S Hare Street, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-22104395/ 22104413/ 22104415/22425846
Mobile No.:	91-9831660117
Fax No.:	91-33-22425792
E-Mail :	r_rampuria@rediffmail.com info@royaltouchfablon.com rtfpl@vsnl.net nawalrathi@rediffmail.com
Website :	http://www.royaltouchfablon.com
Area :	3500 sq.fts
Location :	Owned
Factory 1:	Begampur Dankuni, Near Coca Cola Factory, India
Area :	100000 Sq.fts
Location :	Owned
Factory 2:	2 T N Mukherjee Road, Makhla , Uttartara, India
Area :	50000 sq.fts
Location :	Owned
Branch Office :	C-4 Adhisri Apartments, 32-33 ( New No - 14-16), Kothari Road, Nungambakkam, Chennai – 600034
Tel No.:	91-44-43021440
Mobile No.:	91-9841019650
E-Mail :	pkhanna@airtelbroadband.in pkhanna@rediffmail.com

DIRECTORS

Name :	Mr. Prakash Kandoi
Designation :	Director
Address :	1/1 Bakery Road, Hastinus, Kolkata – 700 022, West Bengal, India
Qualification:	Post Graduate
Date of Appointment :	02.12.1999
Name :	Mr. Vikash Kandoi
Designation :	Director
Address :	1/1 Bakery Road, Hastinus, Kolkata – 700 022, West Bengal, India
Qualification:	Graduate
Date of Appointment :	22.03.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 29.09.2007)

Names of Shareholders	No. of Shares
Prakash Kandoi	912400
Kaushalya Devi Kandoi	283600
Pushpa Kandoi	387400
Shikha Mittal	10000
Basudeo Kandoi	590000
Renu Devi Kandoi	397000
Vikash Kandoi	1127100
Mani Devi Kandoi	426500
Ashok Kandoi	50000
Agantuk Commotrade Private Limited	14000
AJC Electrical Engineer	16000
J V Polyplast Private Limited	362000
Vikash Syntho Plast Private Limited	874000
Total	5450000

Equity Shares Breakup (Percentage of Total Equity): (as on 31.03.2007):-

Category	Percentage
Bodies Corporate	23.00
Directors or relative of directors	77.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Bags and Liners.
Products :	FIBCs Jute Bags / Fabric Woven Sacks Marketing / Carry Bags Tarpaulin Polythene Liners Multilayer Films
Exports :
Products :	All products
Countries :	Europe
Imports :
Products :	Raw materials for LDP
Countries :	· Saudi Arabia · Singapore
Terms :
Selling :	L/C , Cash
Purchasing :	L/C , Cash

GENERAL INFORMATION

Customers :

Wholesalers

No. of Employees :

Around 100

Bankers :

· State Bank of Bikaner and Jaipur

Address: 4 Synagogue Street, 1^st Floor, Kolkata – 700 001, West Bengal, India

· ICICI Bank Limited

Facilities:

Secured Loan	As on 31.03.2007
State Bank of Bikaner and Jaipur [EPC and Bill Discount]	30.103
CC Account with State Bank of Bikaner and Jaipur [Against Hypothecation of all current Assets and Fixed Assets]	101.454
Letter of Credit of State Bank of Bikaner and Jaipur [Against Hypothecation of all Current Assets and Fixed Assets]	29.789
State Bank of Bikaner and Jaipur [Term Loan] [Secured against Hypothecation of all Current Assets and Fixed Assets]	49.732
ICICI Bank Limited [Secured against Hypothecation Motor Car]	0.437
Total	211.515
Unsecured Loans
Other loans [including Interest]	17.545

Banking Relations :

Satisfactory

Auditors :

Name :

S. Swarup and Company

Chartered Accountants

Address :

21, Old Court House Street, Hemanta Basu Sarani, 3^rd Floor, Room No. 303, Kolkata – 700 001, West Bengal, India

Associates/Subsidiaries :

· T B Polyplast Private Limited, Kolkata

Activity: Manufacturer and Exporter of Bags and Liners.

· Renuka Synthetics Private Limited

· Armstrong Packaging private Limited, Kolkata

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
5500000	Equity Shares	Rs. 10/- each	Rs. 55.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5450000	Equity Shares	Rs. 10/- each	Rs.54.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		54.500	54.500	52.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		44.385	40.217	12.900
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		98.885	94.717	65.400
LOAN FUNDS
1] Secured Loans		211.515	188.069	92.720
2] Unsecured Loans		17.545	52.006	8.825
TOTAL BORROWING		229.060	240.075	101.545
DEFERRED TAX LIABILITIES		8.213	1.357	2.063
TOTAL		336.158	336.149	169.008
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		83.960	84.791	33.112
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	84.471	81.228	70.286
	Sundry Debtors	97.623	187.407	124.997
	Cash & Bank Balances	5.889	4.777	3.742
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	137.808	96.086	94.712
Total Current Assets		325.791	369.498	293.737
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	71.033	118.221	157.942
	Provisions	2.620	0.000	0.000
Total Current Liabilities		73.653	118.221	157.942
Net Current Assets		252.138	251.277	135.795
MISCELLANEOUS EXPENSES		0.060	0.081	0.101
TOTAL		336.158	336.149	169.008

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		712.885	489.459	413.468
Brokerage and Commission		0.000	27.772	68.020
Other Income		8.221	1.482	0.000
Total Income		721.106	518.713	481.488
Profit/(Loss) Before Tax		12.643	9.848	7.786
Provision for Taxation		8.475	0.531	2.835
Profit/(Loss) After Tax		4.168	9.317	4.951
Expenditures :
	Cost of Goods Sold	571.244	419.653	396.557
	Insurance	0.734	1.416	0.346
	Power and Fuel	9.859	6.485	2.118
	Repairs and Maintenance	2.256	2.188	1.620
	Store Consumed	8.620	8.290	3.626
	Job Working and Processing Charges	45.957	29.949	40.503
	Packing, Freight and Forwarding	19.754	9.784	9.697
	Bank Interest	21.390	13.228	5.144
	Depreciation & Amortization	5.899	3.535	1.405
	Other Expenditure	22.750	14.337	12.686
Total Expenditure		708.463	508.865	473.702

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	0.58	1.80	1.03
Net Profit Margin (PBT/Sales)	(%)	1.77	2.01	1.88
Return on Total Assets (PBT/Total Assets}	(%)	3.09	2.17	2.38
Return on Investment (ROI) (PBT/Networth)		0.13	0.10	0.12
Debt Equity Ratio (Total Liability/Networth)		3.06	3.78	3.96
Current Ratio (Current Asset/Current Liability)		4.42	3.13	1.85

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

• Car
• Air Condition
• Computer
• Electrical Fitting
• Electrical Installation
• Factory Land
• Factory Shed
• Furniture and Fittings
• Motor Cycle
• Office Equipments
• Plant and Machinery
• Telephone Equipment
• Tempo

FORM 8:-

Corporation identity number or foreign company registrations number of the company	U99999WB1999PTC090687
Name of the company	ROYAL TOUCH FABLON PRIVATE LIMITED
Address	4 Synagogue Street, w.e.f. 23.05.2000, P S Hare Street, Kolkata – 700 001, West Bengal, India
This Form is for	Modification of charge
Type of Charges	· Immovable property · Any Interest in immovable property · Book Debts · Movable property
Particular of the charge holder	State Bank of Bikaner and Jaipur Address: 4 Synagogue Street, 1^st Floor, Kolkata – 700 001, West Bengal, India Email: opbanka@gmail.com
Nature or description of the instrument creating charge	· Memorandum of deposit for creation of charge for term loan / overall limit dated 05.10.2007 · Letter regarding grant of individual limit within overall limit dated 05.10.2007 · Supplemental agreement fro hypothecation of goods for increase in overall limit dated 05.10.2007 · Supplemental agreement of loan for increase in overall limit dated 05.10.2007
Date of the instrument creating charge	05.10.2007
Amount Secure by the charge	Rs. 342.700 millions
Brief of the principal terms and conditions and extent and operation of the charge	Rate of Interest : Cash credit – BPLR presently 13% EPC – As prescribed for EPC FBP / FBD – As prescribed fro EPC Term Loan – BPLR presently 13% Terms of repayment: Repayment start from September 2008 first quarter 3.000 millions and 3.500 millions per quarter thereafter and last two quarter 4.000 millions Margin: Cash credit – Raw materials – 25% , Stock in process – 30% , finished goods 25% , book debts – 40% , EPC – 15% Letter of credit – 10% by way of cash / TDR Bank guarantee -10% by way of cash / TDR Term Loan as prescribed Extent and operation of the charge: · First charge on the entire assets of the company · First charge on in immovable property of Renuka Synthetics Private Limited · First charge on the residential properties of Director and relative detail given in sanction letter
Short particulars of the Property charged	Entire current assets including stock of raw materials, SIP, Finished goods, stores, spares, lying at the factory and other stock points, book debts, etc. Residential properties of Director and relatives, factory land and building of company and factory land and building of M/s Renuka Synthetics, described in sanction letter.
Particulars of the present modification	Vide this modification the overall limit has been increased to 342.700 millions

WEBSITE DETAILS

Company Profile:

The Kandoi family headed by Sri Basudeo Kandoi is engaged in the manufacturing of various packaging products namely PP / HDPE Woven sacks, Jute Bags, Polythene Films etc. The various processing units are located in and around Kolkata, West Bengal. These independent units cater to the growing demand for industrial packaging all over the country. These units have a combined installed capacity of 6000 MT per annum for processing various polymers and the company prides itself in efficiently utilizing capacity at 90%. The group achieved a combined turnover of Rs. 1.2 billion for the financial year 2005-06 depicting a growth rate of 36% over the previous year. Growth projections for the current fiscal stand at a handsome 25%.

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 records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

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.48.71
UK Pound	1	Rs.72.85
Euro	1	Rs.64.70

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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