MIRA INFORM REPORT

Report Date :

14.04.2011

IDENTIFICATION DETAILS

Name :	WELDON CELLOPLAST LIMITED
Registered Office :	304, 3^rd Floor, 9/2, East Patel Nagar, New Delhi – 110 008
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	03.04.1982
Com. Reg. No.:	55-13422
CIN No.: [Company Identification No.]	U74999DL1982PLC013422
TAN No.: [Tax Deduction & Collection Account No.]	DELW00478C
Legal Form :	A closely held public limited liability company
Line of Business :	Manufacturers and Exporter of Silicone Release Papers, Self Adhesive Label Stocks and Tapes.

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit:	USD 23332
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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

LOCATIONS

Registered Office :	304, 3^rd Floor, 9/2, East Patel Nagar, New Delhi – 110 008, India
Tel. No.:	91-11-25740089/ 25745458
Fax No.:	91-11-25821174
E-Mail :	weldon@vsnl.com weldonaccounts@gmail.com
Website :	http://www.weldoncelloplast.com
Area :	450 sq. ft
Location :	Owned
Corporate Office 1 :	Plot No. 54, Jawahar Co-operative Industrial Estate, Kamothe, Panvel, District Raigarh, Maharashtra, India
Tel. No.:	91-22-27879645
Corporate Office 2 :	130, ALB Road, Thiruvanmiyur, Chennai-600041, Tamilnadu, India
Factory :	Plot No. 92, Sector 6, Faridabad, Haryana, India
Tel. No.:	91-129-22241330/25061202
Fax No.:	91-129-25061201
E-Mail :	factory@weldoncelloplast.com
Area :	2565 sq. yds

DIRECTORS

AS ON 30.09.2009

Name :	Mr. Harveer Singh Sahni
Designation :	Managing Director
Address :	30-B, Pusa Road, New Delhi – 110 005, India
Date of Birth/Age :	06.09.1951
Qualification :	P. G.
Date of Appointment :	03.04.1982
Name :	Mr. Pawandeep Singh Sahni
Designation :	Director
Address :	30-B, Pusa Road, New Delhi – 110 005, India
Date of Birth/Age :	21.05.1981
Date of Appointment :	01.12.2000
Name :	Mr. Salvinder Singh
Designation :	Director
Address :	J-87A, G No. 10, Puran Nagar Palam, New Delhi – 110 045, India
Date of Birth/Age :	14.06.1974
Date of Appointment :	30.09.2008
Name :	Mr. Tejainder Vir Singh Sethi
Designation :	Director
Address :	A-288, Defence Colony, New Delhi – 110 024, India
Date of Birth/Age :	19.07.1946
Date of Appointment :	01.07.1997
Date of Ceasing :	02.12.2008

KEY EXECUTIVES

Name :	Aggarwal and Associates
Designation :	Company Secretary
Address :	272 Dayanand Vihar, Delhi-110 092, India
Tel No	91-11-22372434
Mobile No.	91-9811386565
E-mail	shikha_cs@hotmail.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2009

Names of Shareholders	No. of Shares	Percentage of Holding
Kulwant Kaur	10	0.035
Harveer Singh Sahni	110180	35.226
Sarbinder Kaur	7822	27.067
Pawandeep Singh Sahni	5479	18.959
Kanwwardeep Singh Sahni	3620	12.526
Gulsheen Sahni	100	0.346
Guldeep Singh Sahni	5	0.017
Ravinder Singh Sahni	255	0.882
Ritu Gupta	5	0.017
Ruchika Gupta	5	0.017
Ravinder Kaur Sahni	20	0.069
Gurbakshish Gulati	50	0.173
Agya Ram Gulati	50	0.173
Rachna Chopra	40	0.138
Ruxmani Jivraj Gogari	250	0.865
Jivraj Murgai Gogari	250	0.865
Sarla Dinesh Gogari	250	0.865
Dinesh Jivraj Gogari	250	0.865
Trilochan Singh Sahni	250	0.865
Ram Narayain Gupta and Sons	1	0.003
Rajkumar Gupta	1	0.003
Ajay Kr. Gupta	1	0.003
Sushila Gupta	5	0.017
Total	128899	100.000

Equity share breakup (percentage of total equity)

(AS ON 30.09.2009)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and Exporter of Silicone Release Papers, Self Adhesive Label Stocks and Tapes.
Products :	· Self Adhesive Label stocks · Silicon Release Papers · Self Adhesive Transfer Tapes · Speciality Tapes · Thermal Transfer Label Stocks Its selected category is · Fasco Economy · Fasco Premium · Fasco Release Liners · Fasco Self Adhesive Tapes · Fasco Speciality Items
Exports :
Countries :	· Iran · Jordan · U.A.E.
Imports :
Products :	· Base paper (Glassine) · Hot melt adhesive
Countries :	· Finland · Italy · Switzerland · U.S.A.
Terms :
Selling :	L/C and Credit (30/60 days) terms
Purchasing :	Credit (120 days) terms

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

· End Users

No. of Employees :

22

Bankers :

· Syndicate Bank, Old Rajinder Nagar Branch, New Delhi – 110 060, Delhi, India

· Bank of America

· ABN Amro Bank

· Kotak Mahindra

· American Express Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Syndicate Bank O/D (Against Hypothecation of Stock)	7.055	5.757
ABN Amro Bank Car Loan (Toyta)	0.000	0.019
Car Loan Innova	0.183	0.400
Total	7.238	6.176
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Shareholders	0.969	0.194
From Directors	15.599	15.117
Others	8.798	9.462
Total	25.366	24.773

Banking Relations :	--
Auditors :
Name :	Ghosh Khanna and Company Chartered Accountants
Address :	L-2A, Hauz Khas Enclave, New Delhi – 110 016, India
Tel. No.:	91-11-26962981 / 82
Fax No.:	91-11-26962985
E-Mail :	gkc@vsnl.com
Web Site :	http://www.gkcindia.com

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
130000	Equity Shares	Rs.100/- each	Rs.13.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
128899	Equity Shares	Rs.100/- each	Rs.12.889 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		12.889	12.889	2.890
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(7.056)	(7.274)	(7.295)
NETWORTH		5.833	5.615	(4.405)
LOAN FUNDS
1] Secured Loans		7.238	6.176	18.599
2] Unsecured Loans		25.366	24.774	12.265
TOTAL BORROWING		32.604	30.950	30.864
DEFERRED TAX LIABILITIES		0.649	0.649	0.649
TOTAL		39.086	37.214	27.108
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		5.631	6.237	4.874
Capital work-in-progress		1.583	1.541	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	39.885	39.995	37.690
	Sundry Debtors	11.350	7.135	9.717
	Cash & Bank Balances	1.045	0.664	3.454
	Other Current Assets	0.144	0.110	0.172
	Loans & Advances	2.973	4.633	7.525
Total Current Assets		55.397	52.537	58.558
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.296	15.525	36.035
	Others Current Liabilities	10.713	7.060
	Provisions	0.516	0.516	0.413
Total Current Liabilities		23.525	23.101	36.448
Net Current Assets		31.872	29.436	22.110
MISCELLANEOUS EXPENSES		0.000	0.000	0.124
TOTAL		39.086	37.214	27.108

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	27.915	23.976	50.482
		Job Work	0.055	0.000	0.000
		Other Income	4.635	4.569	1.759
		TOTAL (A)	32.605	28.545	52.241
Less	EXPENSES
		Direct Expenses Purchases	20.182	15.078	42.376
		Manufacturing and Other Direct Expenses	5.543	5.368	6.295
		Excise Duty	0.000	0.840	0.386
		Office and Administrative Expenses	2.322	3.069	3.659
		Selling Expenses	0.720	1.960	5.475
		Deferred Revenue Expenses W/off	0.000	0.124	0.123
		Increased / (Decreased) In stock	0.111	(2.306)	(4.062)
		TOTAL (B)	28.878	24.133	54.252
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3.727	4.412	(2.011)
Less	FINANCIAL EXPENSES (D)		2.778	3.396	5.517
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.949	1.016	(7.528)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.731	0.893	0.997
	PROFIT BEFORE TAX (E-F) (G)		0.218	0.123	(8.525)
Less	TAX (I)		0.000	0.102	0.261
	PROFIT AFTER TAX (G-I) (J)		0.218	0.021	(8.786)

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.67	0.07	(15.60)
Net Profit Margin (PBT/Sales)	(%)	0.78	0.51	(16.89)
Return on Total Assets (PBT/Total Assets}	(%)	0.36	0.21	(13.44)
Return on Investment (ROI) (PBT/Networth)		0.04	0.02	(1.94)
Debt Equity Ratio (Total Liability/Networth)		9.62	9.63	(15.28)
Current Ratio (Current Asset/Current Liability)		2.35	2.27	1.61

LOCAL AGENCY FURTHER INFORMATION

Form No. 8

Corporate identity number of the company	U74999DL1982PLC013422
Name of the company	WELDON CELLOPLAST LIMITED
Address of the registered office or of the principal place of business in India of the company	304, 3^rd Floor, 9/2, East Patel Nagar, New Delhi – 110 008, India
This form is for	Creation of charge
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	Syndicate Bank Old Rajinder Nagar Branch, New Delhi – 110 060, Delhi, India
Nature of instrument creating charge	Composite Hypothecation Agreement
Date of instrument Creating the charge	12.01.2009
Amount secured by the charge	Rs.5.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	· Rate on interest Interest shall be charged on PLR plus 1.50% presently 14.75% p.a. rate raising or falling therewith compounded monthly rests or at such other rates as may be specified by the bank from time to time. · Terms of repayment As per sanction terms. · Margin As per sanction terms. · Extent and operation of the charge The hypothecated assets is to secure SOD limit of Rs.5.000 millions granted by Syndicate Bank to the company.
Particulars of the property charged	Hypothecation of silicon adhesive papers, self adhesive labels, tapes security labels etc. magnetic / die cylinders flexible dies etc. to be stored at borrower premises at Village Myessor, Sector – 5, Tehsil Ballabgarh, District Faridabad Haryana. And both present and future and future book debts, receivable of the company.

Corporate identity number of the company	U74999DL1982PLC013422
Name of the company	WELDON CELLOPLAST LIMITED
Address of the registered office or of the principal place of business in India of the company	304, 3^rd Floor, 9/2, East Patel Nagar, New Delhi – 110 008, India
This form is for	Creation of charge
Type of charge	Movable Property Immovable Property
Particular of charge holder	Syndicate Bank
Nature of instrument creating charge	Composite Hypothecation Agreement and Confirmation of Creation of second/subsequent equitable mortgage.
Date of instrument Creating the charge	15/10/2009
Amount secured by the charge	Rs.2.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest shall be charged on PLR plus 2.75% presently 14.75% p. a. rate raising or falling therewith compounded monthly rests or at such other rates as may be specified by the bank from time to time. Terms of Repayment As per sanction terms. Margin As per sanction terms. Extent and Operation of the charge The hypothecated assets and equitable mortgage to secure Adhoc SOD limit of Rs.2.000 Millions granted by Syndicate Bank to the company
Short particulars of the property charged	Hypothecation of silicon adhesive papers, self adhesive labels, tapes security labels etc. megnetic / die cylinders flexible dies etc. to be stored at borrower premises at Village Myessor, Sector - 5, Tehsil Ballabgarh, Distt. Faridabad Haryana. The Equitable mortgage by Mortgage by deposit of title deeds in respect of the company immovable property bearing industrial Plot No. F 228, Measuring 2093, Sq. Metr. Situated in RIICO Industrial Area, Village Khushkhera, Teshil Tizara, Distt. Alwar State Rajasthan and the construction there on.

Fixed Assets

· Plant and Machinery

· Generator

· Furniture

· Electric Installation

· Air Condition

· Car

· Office Equipment

· Computer

· Cycle

· Software

· Vehicle

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.44.48
UK Pound	1	Rs.72.36
Euro	1	Rs.64.42

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	3
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		28

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.