MIRA INFORM REPORT

Report Date :

16.09.2008

IDENTIFICATION DETAILS

Name :	GOVARDHAN POLYPLAST PRIVATE LIMITED
Registered Office :	112, World Trade Centre, Ring Road, Surat – 395 002, Gujarat
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	19.08.1993
Com. Reg. No.:	04-20037
CIN No.: [Company Identification No.]	U25200GJ1993PTC020037
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Various Woven Items

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 37000
Status :	Moderate
Payment Behaviour :	No Complaints
Litigation :	Clear
Comments :	Subject is an established company having moderate track. It has good amount of accumulated losses. Trade relations are fair. The company can be considered good for small to mediocre business dealings.

INFORMATION PARTED BY

Name :	Mr. Manoj Agarwal
Designation :	Director
Contact No.:	91-9825289177
Date :	15.09.2008

LOCATIONS

Registered Office :	112, World Trade Centre, Ring Road, Surat – 395 002, Gujarat, India
Tel. No.:	91-261-2367885 / 886-887
Mobile No.:	91-9825163088
Fax No.:	91-261-2367888
E-Mail :	govardhanpolyplast@drdcs.net govardhan@yahoo.co.in
Area :	412 Sq. ft.
Location :	Owned
Factory :	Block No. 305, Plot No. 2 and 3, Village; Karanj, Tal : Mandvi, Surat – 394 111, Gujarat, India
Area :	8 Acre
Location :	Owned

DIRECTORS

Name :	Mr. Harish Kumar Agarwal
Designation :	Director
Address :	A-502, Nandigrm Apartment, Ghod Dod Road, Surat – 395 007, Gujarat, India
Tel No.:	91-261-2224379
Date of Birth/Age :	30.06.1984
Date of Appointment :	22.12.2003
Name :	Mr. Rajnikant Nagarbhai Patel
Designation :	Director
Address :	5/6, Navsarjan Apartment, B/H Mahadev Nagar Society, Sagrampura, Surat, Gujarat, India
Date of Appointment :	19.08.1993
Name :	Mr. Manoj Kumar Mahavirprasad Agarwal
Designation :	Dikrector
Address :	8/B, Meghrath Apartment, Ghod Dod Road, Surat – 395 007, Gujarat, India
Tel No.:	91-261-2233283
Date of Birth/Age :	26.04.1983
Date of Appointment :	22.12.2003
Name :	Mrs. Savitridevi Rameshkumar Agrawal
Designation :	Director
Address :	A-502, Nandigrm Apartment, Ghod Dod Road, Surat – 395 007, Gujarat, India
Tel No.:	91-261-2224379
Date of Birth/Age :	15.06.1964
Date of Appointment :	25.07.2005
Name :	Mr. Usha Devi Girdharilal Agrawal
Designation :	Director
Address :	6 D, Meghrath Apartment, Bhatar Road, Building – 1, Surat – 395 007, Gujarat, India
Date of Birth/Age :	03.11.1966
Date of Appointment :	25.07.2005
Name :	Mr. Ashok Mahavirprasad Agarwal
Designation :	Director
Address :	8/B, Meghrath Tower 3, Near Madhulika Apartment, Bhatar Road, Surat – 395 001, Gujarat, India
Tel No.:	91-261-395007
Date of Birth/Age :	06.06.1978
Date of Appointment :	11.01.2005

KEY EXECUTIVES

Name :	Dhiren R Dave and Company
Designation :	Company Secretary
Address :	410 Lalbhai Contractor Complex, Nanpura, Surat - 395 001, Gujarat, India
Tel No.:	91-9824115061

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
Yogesh Agarwal	1901
Balkishan Solanki	5096
Manish Agarwal	5330
Vijay Patil	850
Mamraj Sharma	3200
Surendrakumar Agarwal	2550
Sushiladevi Agarwal	2150
Silkesh Dabeliya	2552
Surendrakumar Agarwal, HUF	3251
Ankit Agarwal	2400
Ajaykumar Mahavirprasad Agarwal	3883
Manoj Agarwal	6947
Ashish Agarwal	2359
Ramdev Dayal Singh	7000
Sudha Mittal	2487
Abhishek Agarwal	2157
Anil Mittal	2900
Bhavani Yadav	2100
B Yadav	2410
Sohan Mittal	3200
Rakesh Agarwal	1410
J Sharma	2260
Kavita Mittal	3107
Fedder Tie Up Private Limited	2500
H R Agarwal	1500
Savitridevi Agrawal	2000
Usha Devi Girdharilal Agrawal	1500
Others	310
Total	79310

Equity shares Breakup (percentage of total equity)

(As on 29.09.2007)

Category	Percentage
Bodies corporate	3.00
Directors or relatives of directors	55.00
Other top fifty (50) shareholders	42.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Various Woven Items
Products :	· PP/HDPE Woven Sacks · Flexible Intermediate Bulk Containers · Woven PP Sacks · Unlaminated Sacks · Jumbo Bags · PP Packaging Material · Fabrics · Polypropylene Woven Bags · Wide Width Fabrics Upto 60” · Cement Bags · Flour Mill Bags · Natural Bags
Exports :
Countries :	· European Countries · Holland
Imports :
Countries :	European Countries
Terms :
Selling :	Credit (30 days)
Purchasing :	Credit (30 days)

GENERAL INFORMATION

Customers :	· Wholesalers · Retailers · OEM’s
No. of Employees :	212 (In Office 12 and In Factory 200)
Bankers :	Bank of Baroda
Facilities :	CC Rs.7.500 millions

Banking Relations :	Satisfactory
Auditors :
Name :	H Tosniwal and Company Chartered Accountants
Address :	604, Empire State Building, Ring Road, Surat – 395 002, Gujarat, India
Associates/Subsidiaries :	· Girdhar Fibres Private Limited · Gopal Fibres Private Limited · Gopish Fibres Private Limited

CAPITAL STRUCTURE

(As on 29.09.2007)

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
79310	Equity Shares	Rs.100/- each	Rs.7.931 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		7.931	7.931	7.000
2] Share Application Money		1.515	1.805	0.500
3] Reserves & Surplus		2.753	2.753	1.822
4] (Accumulated Losses)		(4.752)	(5.904)	(5.474)
NETWORTH		7.447	6.585	3.848
LOAN FUNDS
1] Secured Loans		17.545	24.583	3.654
2] Unsecured Loans		16.405	13.221	0.441
TOTAL BORROWING		33.950	37.804	4.095
DEFERRED TAX LIABILITIES		0.689	0.000	0.000
TOTAL		42.086	44.389	7.943
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		29.451	30.409	3.798
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.318	0.318	0.000
DEFERREX TAX ASSETS		0.000	0.113	0.705
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	6.689	4.534	0.278
	Sundry Debtors	4.012	6.850	3.030
	Cash & Bank Balances	0.194	0.197	0.132
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.704	5.477	2.493
Total Current Assets		19.599	17.058	5.933
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	7.177	3.551	2.536
	Provisions	0.149	0.018	0.000
Total Current Liabilities		7.326	3.569	2.536
Net Current Assets		12.273	13.489	3.397
MISCELLANEOUS EXPENSES		0.044	0.060	0.043
TOTAL		42.086	44.389	7.943

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		41.509	28.503	8.017
Other Income		9.114	0.383	0.287
Total Income		50.623	28.886	8.304
Profit/(Loss) Before Tax		2.091	0.180	(0.180)
Provision for Taxation		0.939	0.609	0.000
Profit/(Loss) After Tax		1.152	(0.429)	(0.180)
Expenditures :
	Financial Charges	2.081	1.115	0.358
	Increase/(Decrease) in Finished Goods	(2.093)	(2.493)	0.480
	Depreciation & Amortization	1.658	0.903	0.371
	Other Expenditure	46.886	29.181	7.275
Total Expenditure		48.532	28.706	8.484

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.28	(1.49)	(2.17)
Net Profit Margin (PBT/Sales)	(%)	5.04	0.63	(2.25)
Return on Total Assets (PBT/Total Assets}	(%)	4.26	0.38	(1.85)
Return on Investment (ROI) (PBT/Networth)		0.28	0.03	(0.05)
Debt Equity Ratio (Total Liability/Networth)		5.54	6.28	1.72
Current Ratio (Current Asset/Current Liability)		2.68	4.78	2.34

LOCAL AGENCY FURTHER INFORMATION

Trustseal Acceptance Chart

Parameters	Details
Existence Verification
Name	GOVARDHAN POLYPLAST PRIVATE LIMITED
Statutory Approvals
Legal Status of Firm	Private Limited Company
Income Tax Registration	AACCG5121D
Central Sales Tax Registration	24223700233
State Sales Tax Registration	24223700233
Service Tax Registration	AACCG5121D ST001
VAT/ TIN Registration
Excise Registration	AACG8684 MX M002
Import Export Code	5205029510
Name of Bank	Bank of Baroda
Current Account Number	CC-02630500000098
Account Since	2005
Credibility Factors
IndiaMART Client Since	2 Years
Trade Affiliations
SSI Registration	0771132

Form No. 8

Name of the company	GOVARDHAN POLYPLAST PRIVATE LIMITED
Presented By	Harish Agarwal
1) Date and description of instrument creating the change	26.10.2005 Hypothecation Agreement
2) Amount secured by the charge/amount owing on the securities of charge	Rs.22.900 millions Term Loan : Rs.15.400 millions Cash Credit : Rs.7.500 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	1. All tangible movable plant and machinery of the company with all its spares, tools and accessories both present and future situated at works at Vil. Karanj, Tal. Mandvi, Dist. Surat 2. All Stocks of Raw Materials, Work in Process, Semi Finished Goods and Finished Goods such as Plastic Grannuals (High Density Poly-propeline and High Density Poly Etheline), Filler, Master Batch, LDPE, Alongwith Packing Material and Stores etc. 3. All present and future Book Debts of the Company.
4) Gist of the terms and conditions and extent and operation of the charge.	Term Loan : Interest @ 1.25% over BPLR i.e. Minimum 11.75% Margin 25% C.C. (hypo. Of Stock) : 0.50% over BPLR minimum 11% Margin 30%
5) Name and Address and description of the person entitled to the charge.	Bank of Baroda Vania Sheri Branch, Surat
6) Date and brief description of instrument modifying the charge	Not Applicable
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	Not Applicable

Web Details

Subect was established in the year 2005. In one year, they have emerged as the most competitive manufacturer and exporter of PP/HDPE Woven Sacks, Flexible Intermediate Bulk Containers, Woven PP Sacks, Unlaminated Sacks, Jumbo Bags, PP Packaging Materials, Low Fabrics, Polypropylene Woven Bags, Wide Width Fabrics Upto 60”, Cement Bags, Flour Mill Bags and Natural Bags. As one of the most energetic upcoming company, they constantly develop cost down products. They have acknowledged the taste and preference of the esteemed clients and serving them with the superior, durable and reliable quality products at competitive prices. The comprehensive quality control measures ensure that they are able to meet high quality standards. The smooth and efficient transport facilities provides safe and on time delivery of the products.

The sister concerns viz. Gopal fibers Private Limited Girdhar fibers Private Limited and Gopish Fibers Private Limited established in 1997, are the manufacturer of Polyester Oriented Yarn.

Infrastructure

With effective and sound infrastructural, they back the operation efficiently. The sophisticated and state of the art manufacturing unit is complacent with ultramodern machineries and equipment for production of optimum quality products. The company possess most dexterous, astute and experienced technocrats, marketing personnels and business oriented professionals. They are one of the most competitive manufacturer and exporter of PP/HDPE Woven Sacks, Flexible Intermediate Bulk Containers, Woven PP Sacks, Unlaminated Sacks, Jumbo Bags, PP Packaging Material, Fabrics, Polypropylene Woven Bags, Wide Width Fabrics Upto 60”, Cement Bags, Flour Mill Bags and Natural Bags.

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.45.94
UK Pound	1	Rs.82.84
Euro	1	Rs.65.95

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		33

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