MIRA INFORM REPORT

Report Date :

16.04.2011

IDENTIFICATION DETAILS

Name :	SPP POLY PACK PRIVATE LIMITED
Registered Office :	35 A and C, IDA, Kattedan, Hyderabad – 500 077, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.10.2003
Com. Reg. No.:	01-041899
CIN No.: [Company Identification No.]	U25209AP2003PTC041899
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Poly Bags in LDPE, HMHDPE and PP.

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 101000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual 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 – 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 PARTED BY

Name :	Mr. Sudhir Rathi
Designation :	Chief Executive Officer/ Sales Head
Contact No.:	91-9885038618
Date :	16.04.2011

LOCATIONS

Registered Office/ Administrative Office/ Factory :	35 A and C, IDA, Kattedan, Hyderabad – 500 077, Andhra Pradesh, India
Tel. No.:	91-40-24361018
Mobile No.:	91-9885038618 (Mr. Sudhir Rathi)
Fax No.:	91-40-24360218
E-Mail :	narendra@slpindia.com info@spppoly.com racoauditors@yhaoo.com
Website :	http://www.spppoly.com http://www.slpindia.com
Area :	5000 sq ft (Approximately)
Location :	Owned

DIRECTORS

As on 15.09.2010

Name :	Mr. Suresh Chandra Lahoti
Designation :	Director
Address :	8-3-167/D/248, Kalyan Nagar, Hyderabad – 500 038, Andhra Pradesh, India
Date of Birth/Age :	12.01.1954
Qualification :	Graduate
Date of Appointment :	20.10.2003
DIN No.:	01848247
Name :	Mr. Naresh Kumar Rathi
Designation :	Director
Address :	15-7-297, Begum Bazar, Hyderabad – 500 012, Andhra Pradesh, India
Date of Birth/Age :	02.08.1963
Qualification :	Graduate
Date of Appointment :	20.10.2003
DIN No.:	01848262

KEY EXECUTIVES

Name :	Mr. Sudhir Rathi
Designation :	Chief Executive Officer/ Sales Head

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 15.09.2010

Names of Shareholders	No. of Shares	Percentage of holding
Naresh Kumar Rathi	297500	45.77
Suresh Chandra Lahoti	98000	15.08
Govindlal Rathi	1000	0.15
Smt.Ayodhya devi Rathi	2000	0.31
Jawaharlal Rathi	4000	0.62
GopaIlal Rathi	32000	4.92
Susheela Devi Rathi	2000	0.31
Balkishan Rathi	5000	0.77
Sarla B. Rathi	2000	0.31
Surendra Kumar Rathi	2000	0.31
Rajni Rathi	2000	0.31
Usha Rathi	2000	0.31
Sharad Kumar Rathi	2000	0.31
Smt.Anuracjha Rathi	12000	1.85
Umesh Kumar Rathi	18500	2.85
Savitha Rathi	2000	0.31
Manish Kumar Rathi	2000	0.31
Aarti Rathi	32000	4.92
Sunhl Kumar Rathi	2000	0.31
Madhu Rathi	32000	4.92
Sudhir Kumar Rathi	2000	0.31
Sonali Rathi	2000	0.31
Rohit Rathi	42000	6.46
Surendra Stock Brokers, India	10000	1.54
Rahul Stocks Private Limited, India	10000	1.54
Smt. Sarju Devi Lahoti	3000	0.46
Smt. Manju Devi Lahoti	3000	0.46
Shailesh Lahoti	4000	0.62
Smt. Sheetal Lahoti	3000	0.46
Sarvesh Lahoti	3000	0.46
Saurabh Lahoti	12000	1.85
Suresh Chandra Lahoti HUF	2000	0.31
Shailesh Lahoti HUF	2000	0.31
Total	650000	100.00

As on 15.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	3.08
Directors or relatives of directors	96.92
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Poly Bags in LDPE, HMHDPE and PP.
Products :	· Plain and Printed Polythene Bags T Shirts Bags Soft Loop Bags and Die Cut Bags Anti-Static Bags LDPE Shrink Film Stretch Film
Terms :
Selling :	Cash and Credit (30/ 60/ 90 days)
Purchasing :	Cash and Credit (30/ 60/ 90 days)

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	2009-10
Actual Production	2880104.645 kgs.

GENERAL INFORMATION

Customers :

End Users and OEM’s

No. of Employees :

50 (Approximately)

Bankers :

Axis Bank, 6-3-879/B, Greenlands Road,, Begumpet,, Hyderabad – 500 016, Andhra Pradesh, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loans:
Axis Bank Term Loan – 32268970	0.826	2.847
Working Capital Loans:
Axis Bank Cash Credit	44.255	37.329
Axis Bank LC	10.517	4.083
Total	55.598	44.259

Banking Relations :	--
Auditors :
Name :	S.A. Thakkar Associates Chartered Accountants
Address :	Flat No.401, 1-10-1/12, Manbhum Prestige, Ashok Nagar, Hyderabad – 500 077, Andhra Pradesh, India

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
650000	Equity Shares	Rs.10/- each	Rs.6.500 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		6.500	6.500	6.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		18.812	14.203	10.441
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25.312	20.703	16.941
LOAN FUNDS
1] Secured Loans		55.598	44.259	36.162
2] Unsecured Loans		9.824	8.573	9.078
TOTAL BORROWING		65.422	52.832	45.240
DEFERRED TAX LIABILITIES		0.581	0.534	0.470
TOTAL		91.315	74.069	62.651
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		19.424	16.929	13.344
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	14.346	10.448	12.091
	Sundry Debtors	48.250	42.551	61.867
	Cash & Bank Balances	1.163	1.204	1.186
	Other Current Assets	0.000	0.000	0.000
	Loans, Advances & Deposits	11.313	9.252	5.775
Total Current Assets		75.072	63.455	80.919
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.780	5.062	30.790
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	1.401	1.253	0.822
Total Current Liabilities		3.181	6.315	31.612
Net Current Assets		71.891	57.140	49.307
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		91.315	74.069	62.651

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	231.796	197.506	176.255
		Other Income	1.754	1.370	0.214
		TOTAL (A)	233.550	198.876	176.469
Less	EXPENSES
		Raw Material Consumed	189.289	159.703	142.327
		Payments to and for Employees	5.945	5.393	4.614
		Manufacturing Expenses	10.456	9.723	9.384
		Administration and Selling Expenses	10.922	8.766	6.525
		Increase/ Decrease in Closing Stock	(0.249)	(1.319)	1.567
		TOTAL (B)	216.363	182.266	164.417
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		17.187	16.610	12.052
Less	FINANCIAL EXPENSES (D)		7.772	8.737	5.824
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.415	7.873	6.228
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.726	2.282	1.287
	PROFIT BEFORE TAX (E-F) (G)		6.689	5.591	4.941
Less	TAX (H)		2.080	1.829	1.559
	PROFIT AFTER TAX (G-H) (I)		4.609	3.762	3.382
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		14.203	10.441	7.059
	BALANCE CARRIED TO THE B/S		18.812	14.203	10.441
	Earnings Per Share (Rs.)		0.71	NA	NA

Expected Sales (2010-2011): Rs.300.000 millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.97	1.89	1.92
Net Profit Margin (PBT/Sales)	(%)	2.89	2.83	2.80
Return on Total Assets (PBT/Total Assets}	(%)	7.08	6.96	5.24
Return on Investment (ROI) (PBT/Networth)		0.26	0.27	0.29
Debt Equity Ratio (Total Liability/Networth)		2.71	2.86	4.54
Current Ratio (Current Asset/Current Liability)		23.60	10.05	2.56

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Sundry Creditors
Sundry Creditors RM	1.069	5.853	30.622
Gratuity	0.140	0.090	0.000
Miscellaneous Creditors	0.571	(0.881)	0.168
	1.780	5.062	30.790

FORM 8:

Corporate identity number of the company	U25209AP2003PTC041899
Name of the company	SPP POLY PACK PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	35A, IDA, Kattedan, Hyderabad – 500 077, Andhra Pradesh, India E-Mail: narender@slpindia.com
This form is for	Modification of charge
Charge identification number of the modified	90262938
Type of charge	Book Debts Movable Property
Particular of charge holder	Axis Bank, 6-3-879/B, Greenlands Road,, Begumpet,, Hyderabad – 500 016, Andhra Pradesh, India E-Mail: BL.Sailaja@axisbank.com
Nature of description of the instrument creating or modifying the charge	Memorandum of Entry
Date of instrument Creating the charge	06/12/2010
Amount secured by the charge	Rs.55.950 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: As per Previous Sanction Letter Terms of Repayment: As per Previous Sanction Letter Margin: As per Previous Sanction Letter Extent and Operation of the charge: Charge Operates as Security for total advances of Rs.55.950 millions.
Short particulars of the property charged	Security: Charge on the entire current assets, present and future of the Company is no Change Collateral: i) Charge on the entire fixed assets, present and future along with leasehold as in point (ii). Lease hold property situated at Survey No.48, Ward No.6, Block No.8, Plot No.35, S.E.I.E, Katedan, Rajendra Nagar Municipality, Ranga Reddy District as per MOE
Particulars of the present modification	No change in limits, except inclusion of leasehold rights on the said property at 35, IDA Kattedan, Hyderabad and reduction of limits from Rs.60.450 millions to Rs.55.950 millions.

CONTINGENT LIABILITY: (As on 31.03.2010)

Contingent liability not provided for on account of guarantee given by the Company to Axis Bank Limited for loans granted to group companies Srinath Rotopack Private Limited Rs.293.000 millions and Blend Colors Private Limited Rs.125.500 millions.

FIXED ASSETS:

· Computer System

· Machinery A/c

· Electronics Weighing Machine

· Furniture and Fitting

· Generator

· Vehicles

· Building A/c

· Air Conditioner

· Vacuum Cleaner

· Air Curtain

· Fire Extinguisher

· Cycle

· EPABX System

· Pallate Trolley

· Exhaust Fans

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.44.52
UK Pound	1	Rs.72.72
Euro	1	Rs.64.41

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--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		47

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.