MIRA INFORM REPORT

Report Date :

09.04.2011

IDENTIFICATION DETAILS

Name :	WELSET PLAST EXTURSIONS PRIVATE LIMITED
Registered Office :	8, New Metalage Industrial Compound, Subhash Road, off. Caves Road, Jogeshwari (East), Mumbai – 400060, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	08.07.1988
Com. Reg. No.:	11-048042
CIN No.: [Company Identification No.]	U24134MH1988PTC048042
TAN No.: [Tax Deduction & Collection Account No.]	MUMW01069F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Plastic Products

RATING & COMMENTS

MIRA’s Rating :

B (26)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 320000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The management has not filed the financial of the company with the government department since 2008, and management denied to provide us the same. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION DECLINED BY

Name :	Mr. Rodrix
Designation :	Finance Manager
Date :	08.04.2011

LOCATIONS

Registered Office :	8, New Metalage Industrial Compound, Subhash Road, off. Caves Road, Jogeshwari (East), Mumbai – 400060, Maharashtra, India
Tel. No.:	91-22-28215734/ 28388320/ 28387054
Fax No.:	91-22-28381083/ 88
E-Mail :	arvindmehta@welset.com info@welset.com
Website :	www.welset.com

DIRECTORS

As on 30.09.2008

Name :	Mr. Arvind Mathuradas Mehta
Designation :	Whole Time Director
Address :	5, Neetdeep, 12, Bajaj Road, Vile Parle (West), Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	27.08.1945
Date of Appointment :	08.07.1988
Date of Ceasing:	00141465
Name :	Mrs. Indira Arvind Mehta
Designation :	Director
Address :	5, Neetdeep, 12, Bajaj Road, Vile Parle (West), Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	19.04.1950
Date of Appointment :	08.07.1988
DIN No.:	00141569
Name :	Mr. Paresh Arvind Mehta
Designation :	Director
Address :	5, Neetdeep, 12, Bajaj Road, Vile Parle (West), Mumbai – 400056, Maharashtra, India
Date of Birth/Age :	20.06.1972
Date of Appointment :	07.03.1996
DIN No.:	00141586

KEY EXECUTIVES

Name :	Mr. Rodrix
Designation :	Finance Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Equity Shares As on 30.09.2008

Names of Shareholders	No. of Shares
Arvind Mathuradas Mehta	46900
Indira Arvind Mehta	35800
Paresh Arvind Mehta	23200
Arvind Mathuradas Mehta (HUF)	7800
Nehal Paresh Mehta	3800
Tanisha Paresh Mehta	1500
Total	119000

Preference Shares As on 30.09.2008

Names of Shareholders	No. of Shares
Arvind Mathuradas Mehta (HUF)	400
Keshvi Arvind Mehta	300
Asmita Arvind Mehta	300
Total	1000

As on 01.10.2008

List of Allottees	No. of Equity Shares Allotted
Arvind Mathuradas Mehta	25000
Indira Arvind Mehta	40000
Paresh Arvind Mehta	15000
Arvind Mathuradas Mehta (HUF)	14000
Total	94000

As on 30.09.2008

S. No.	Category	Percentage
1	Directors or relatives of Directors	100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Plastic Products

Products :

Item Code No.	Product Description
3904-21 and 3904-22	PVC Compound
3917.00 and 3916.90	Plastic Extruded Tubes, Pipes, Hoses and Sections/Profiles
3206.90	Master Batches
3903.30	ABS Colored Materials

PRODUCTION STATUS AS ON 31.03.2007

Particulars	Unit	Actual Production
PVC Compound	Kgs	2977622
PVC Extruded Items	Kgs	193656
Master Batches	Kgs	3234078
Reprocessed Plastic Powder	Kgs	20708
TPE Compound	Kgs	70306

GENERAL INFORMATION

No. of Employees :

Not Divulged by the Management.

Bankers :

• State Bank of India, Industrial Finance Branch, S V Road, Malad (West), Mumbai – 400064, Maharashtra, India

Facilities :

SECURED LOAN	31.03.2007 Rs. in Millions	31.03.2006 Rs. in Millions
STATE BANK OF INDIA
Medium Rupee Term Loan	8.293	14.818
Medium FCNR Term Loan	5.618	7.548
Cash Credit	81.181	61.127
ICICI BANK Limited (Against hypothecation of Vehical and also guaranteed by the Directors of the Company in their personal capacity)	1.203	0.388
TOTAL	96.295	83.881
UNSECURED LOAN	31.03.2007 Rs. in Millions	31.03.2006 Rs. in Millions
From Directors	6.631	11.272
From Others	6.279	5.635
TOTAL	12.911	16.907

Banking Relations :	--
Financial Institute:	SBI Factors and Commercial Services Private Limited, 102, Oracle Point, 3 Turner Road, Opposite Bandra Railway Station, Bandra (West), Mumbai – 400050, Maharashtra, India
Auditors :
Name :	N P Patwa and Company Chartered Accountant
Address :	102, Sudaive, Hindu Colony, Road 3, Dadar Central, Mumbai – 400014, Maharashtra, India

CAPITAL STRUCTURE

As on 30.09.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
499000	Equity Shares	Rs.100/- each	Rs. 49.900 Millions
1000	13.5% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.0.100 Million
	Total		Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
119000	Equity Shares	Rs.100/- each	Rs. 11.900 Millions

As on 31.03.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
99000	Equity Shares	Rs.100/- each	Rs.9.900 Millions
1000	13.5% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.0.100 Million
	Total		Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
79000	Equity Shares	Rs.100/- each	Rs.7.900 Millions
1000	13.5% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.0.100 Million
	(The Said Shares shall be redeemable at par at the option of the Directors but not later than 31-12-2007)
	Total		Rs. 8.000 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		8.000	8.000	8.000
2] Share Application Money		4.000	0.000	0.000
3] Reserves & Surplus		67.312	57.267	54.462
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		79.312	65.267	62.462
LOAN FUNDS
1] Secured Loans		96.295	83.881	64.717
2] Unsecured Loans		12.911	16.907	12.296
TOTAL BORROWING		109.206	100.788	77.013
DEFERRED TAX LIABILITIES		5.839	4.525	0.000
TOTAL		194.357	170.580	139.475
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		82.363	82.163	62.086
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.019	0.019	0.019
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	80.942	55.929	47.081
	Sundry Debtors	86.790	62.521	45.110
	Cash & Bank Balances	4.683	2.470	1.295
	Other Current Assets	0.138	0.234	0.889
	Loans & Advances	14.835	15.130	14.478
Total Current Assets		187.388	136.284	108.853
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	56.730	35.079	29.152
	Other Current Liabilities	17.472	12.784	2.352
	Provisions	1.216	0.029	0.000
Total Current Liabilities		75.418	47.892	31.504
Net Current Assets		111.970	88.392	77.349
MISCELLANEOUS EXPENSES		0.005	0.006	0.021
TOTAL		194.357	170.580	139.475

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2007	31.03.2006	31.03.2005
	SALES
		Income	397.106	272.002	228.056
		Other Income	0.609	18.296	0.032
		TOTAL (A)	397.715	290.298	228.088
Less	EXPENSES
		Raw Material Consumed	298.704	236.270	176.977
		Manufacturing Expenses	21.380	20.043	11.118
		Wages, Contract Labour and Amenities to Employees	12.742	8.607	5.679
		Administrative, Selling and Other Expenses	26.144	19.906	10.308
		Increased / Decreased in stock of Finished Goods.	2.119	(20.534)	3.045
		Provision For Doubtful Debts	2.700	0.000	0.000
		Preliminary Expenses written off	0.000	0.013	0.025
		Patent Expenses written off	0.001	0.001	0.001
		TOTAL (B)	363.790	264.306	207.153
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		33.925	25.992	20.935
Less	FINANCIAL EXPENSES (D)		16.258	13.496	4.081
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.667	12.496	16.854
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.597	4.155	5.777
	PROFIT BEFORE TAX (E-F) (G)		13.070	8.341	11.077
Less	TAX (H)		3.010	4.514	0.800
	PROFIT AFTER TAX (G-H) (I)		10.060	3.827	10.277
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		55.262	52.457	42.469
Less	APPROPRIATIONS
		Proposed Dividend on Preference Shares	0.013	0.013	0.013
		Corporate Dividend Tax Thereon	0.002	0.002	0.000
		Transfer to General Reserve	0.000	0.000	0.276
	BALANCE CARRIED TO THE B/S		65.307	56.269	52.457
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	50.833	15.080	3.447
	TOTAL EARNINGS		50.833	15.080	3.447
	IMPORTS
		Raw Materials	39.844	28.106	7.636
	TOTAL IMPORTS		39.844	28.106	7.636
	Earnings Per Share (Rs.)		121.75	48.25	--

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	2.52	1.32	4.50
Net Profit Margin (PBT/Sales)	(%)	3.29	3.06	4.85
Return on Total Assets (PBT/Total Assets}	(%)	4.84	3.81	6.48
Return on Investment (ROI) (PBT/Networth)		0.16	0.13	0.18
Debt Equity Ratio (Total Liability/Networth)		2.33	2.28	1.73
Current Ratio (Current Asset/Current Liability)		2.48	2.84	3.45

LOCAL AGENCY FURTHER INFORMATION

DETAILS OF SUNDRY CREDITORS

(Rs. in Millions)

Particulars	31.03.2007	31.03.2006	31.03.2005
Sundry Creditors	56.730	35.079	29.152

Operations:

In the current year, the company has a turnover of Rs. 397.106 Millions as against Rs. 272.002 Millions in the previous year. The Net Profit after tax is Rs. 10.060 Millions as against Rs. 3.827 Millions in the previous year.

Contingent Liabilities, not provided for:

Particulars	31.03.2007 Rs. in Millions
Capital Commitment (Net of Advances)	0.500
Letter of Credits (Against FDR of Rs. 0.939 Million (Previous year Nil)	2.515
Bank Guarantee: (Against FDR of Rs. 0.828 Million) (Previous year RS. 0.488 Million)	2.599
Bills Discounted : (Since Realised)	9.206

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	90237687
Corporate identity number of the company	U24134MH1988PTC048042
Name of the company	WELSET PLAST EXTURSIONS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	8 Metalage Ind Compoundsubhash Road, Jogeshwari E, Mumbai – 400060, Maharashtra, India
Type of charge	Book Debts
Particular of charge holder	SBI Factors and Commercial Services Private Limited, 102, Oracle Point, 3 Turner Road, Opposite Bandra Railway Station, Bandra (West), Mumbai – 400050, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Agreement of Hypothecation of Book Debts And Assets dt. 4th May, 2009 Factoring agreement dated 4th, May,2009. deed of guarantee dated 4th May,2009.
Date of instrument Creating the charge	04.05.2009
Amount secured by the charge	Rs.50.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest FPLR + 1% effective 14.50% p.a. with monthly rests. Terms of Repayment On demand Margin 20% Extent and Operation of the charge 1st Charge on the Book Debts of the company
Short particulars of the property charged	Secured by all present and future book debts of the Clients in respect of agreed customers shall stand hypothecated to the factor by way of first charge
Date of latest modification prior to the present modification	04/05/2009
Particulars of the present modification	Debts purchase limit (DP Limit) Enhanced from Rs. 25.000 Millions to Rs. 50.000 Millions

FIXED ASSETS:

• Air Conditions
• Computers
• Dies and Tools
• Electrical Fittings
• Mobile Phones
• Office Equipments
• Plant and Machinery
• Vehicles
• Furniture and Fixtures
• Building
• Laboratory Equipments
• Fire Fitting Equipments

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

No 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.44.04
UK Pound	1	Rs.72.20
Euro	1	Rs.63.40

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	2
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.