MIRA INFORM REPORT

Report Date :

10.08.2011

IDENTIFICATION DETAILS

Name :	SAFEPACK INDUSTRIES LIMITED (w.e.f. 1996)
Formerly Known As :	SAFEPACK POONA PRIVATE LIMITED
Registered Office :	Gate No. 1093/1094, At and Post Shiroli, Taluka Rajguru Nagar, Pune – 410 505, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	03.05.1991
Com. Reg. No.:	11-061503
Capital Investment / Paid-up Capital :	Rs.22.500 Millions
CIN No.: [Company Identification No.]	U29195PN1991PLC061503
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Speciality Packing Material.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 500000
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 dealing 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. Ravindra Mali
Designation :	Assistant Manager in Accounts
Contact No.:	91-9860798881

LOCATIONS

Registered Office/Factory :	Gate No. 1093/1094, At and Post Shiroli, Taluka Rajguru Nagar, Pune – 410 505, Maharashtra, India
Tel. No.:	91-2135-222199
Mobile No.:	91-9860798881 (Mr. Ravindra Mali)
Fax No.:	91-2135-223289
E-Mail :	vtipsen@safepack.com
Website :	www.safepack.com
Area :	50000 sq. ft.
Location :	Owned
Marketing Office 1:	77, Safepack Complex, MIDC, Bhosari, Pune – 411 026, Maharashtra, India
Tel. No.:	91-20-27111000
Fax No.:	91-20-27111000
E-Mail :	info@safepack.com marketing@safepack.com exports@safepack.com
Marketing Office 2:	Symphony Building, Range Hill Road, Bhosale Nagar, Pune, Maharashtra, India
Tel No.:	91-20-25560400
Fax No.:	91-20-25560888

DIRECTORS

As on 30.09.2010

Name :	Mrs. Anjali Rajendra Tapadia
Designation :	Working Director
Address :	Bunglow No. 1, Mauli Mantri Kishore Park, Bhosale Nagar, Pune – 411 007, Maharashtra, India
Date of Birth/Age :	30.07.1962
Date of Appointment :	26.05.1991
Din No.:	00508907
Name :	Mr. Rajendra Bhagirath Tapadia
Designation :	Chairman and Managing Director
Address :	Bunglow No. 1, Mauli Mantri Kishore Park, Bhosale Nagar, Pune – 411 007, Maharashtra, India
Date of Birth/Age :	06.10.1959
Date of Appointment :	16.11.2000
Din No.:	00508894
Name :	Mr. Mohan Harakchand Bhandari
Designation :	Director
Address :	Siddarth, C/11, Abhimanshri Coop. Society, Pune 411 008, Maharashtra, India
Date of Birth/Age :	14.11.1959
Date of Appointment :	20.10.2001
Din No.:	00052777
Name :	Mr. Rajesh Omkarnath Malpani
Designation :	Director
Address :	Malpani House, Indira Gandhi Road, Sangamner, Dist. Ahmednagar
Date of Birth/Age :	23.02.1961
Date of Appointment :	20.11.2001
Din No.:	01596468

KEY EXECUTIVES

Name :	Mr. Ravindra Mali
Designation :	Assistant Manager in Accounts

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Rajendra Bhagirath Tapadia	1725150
Anjali Rajendra Tapadia	521500
Ajit Khushalchand Lunawat	1000
Mohan Harakchand Bhandari	1250
Rajendra Bhagirath Tapadia (HUF)	500
Sushil Pandurang Mantri	100
Rajesh Omkarnath Malpani	250
Safe Packaging Private Limited, India	250
Total	2250000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	0.01
Directors or relatives of directors	99.92
Other top fifty shareholders	0.07
Total	100.00

List of Allottee:

As on 06.06.2011

Names of Shareholders	No. of Shares
Rajendra Bhagirath Tapadia	1380120
Anjali Rajendra Tapadia	417200
Ajit Khushalchand Lunawat	800
Mohan Harakchand Bhandari	1000
Rajendra Bhagirath Tapadia (HUF)	400
Sushil Pandurang Mantri	80
Rajesh Omkarnath Malpani	200
Safe Packaging Private Limited, India	200
Total	1800000

BUSINESS DETAILS

Line of Business :	Manufacturer of Speciality Packing Material.
Exports :
Products :	Packing Material
Countries :	Italy USA Iran Qatar China
Imports :
Products :	Plastic Granules Paper
Countries :	Qatar China Russia Germany
Terms :
Selling :	Credit (CAD)
Purchasing :	L/C / Credit

GENERAL INFORMATION

Customers :

Others

No. of Employees :

200 (Approximately)

Bankers :

State Bank of India, 1548 A, Commercial Branch, Sadashiv Peth, Pune – 411 030, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Bank
Term Loans (Amount repayable within one year Rs.7.916 millions previous year Rs.6.879 millions)	21.289	8.639
Cash Credit	13.027	52.115
Export Packing Credit	1.539	1.365
FCNRB Accounts	59.799	0.000
Total	95.654	62.119
Unsecured Loan
Sales Tax Deferral (Amount repayable within one year Rs.0.414 million previous year RS.0.175 million)	7.734	7.910
From Directors	83.924	66.278
Total	91.658	74.188

Banking Relations :	--
Auditors :
Name :	Patankar and Associates Chartered Accountant
Address :	4 Ameya, Anand Baug Co-Operative Housing Society, 999 Navi Peth, Pune-411300, Maharashtra, India
Associates/Subsidiaries :	Art Enterprises Safe Propack Private Limited Industrial Paper Company Art Blends Limited

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital : Rs.42.500 Millions

Issued, Subscribed & Paid-up Capital : Rs.40.500 Millions

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
2980000	Equity Shares	Rs.10/- each	Rs.29.800 Millions
20000	Preferences Shares	Rs.10/- each	Rs.0.200 Million
	Total		Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2250000	Equity Shares	Rs.10/- each	Rs.22.500 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		22.500	9.000	9.000
2] Share Application Money		0.000	0.000	4.000
3] Reserves & Surplus		103.678	105.679	112.905
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		126.178	114.679	125.905
LOAN FUNDS
1] Secured Loans		95.654	62.119	37.313
2] Unsecured Loans		91.658	74.188	69.832
TOTAL BORROWING		187.312	136.307	107.145
DEFERRED TAX LIABILITIES		6.567	6.037	5.330
TOTAL		320.057	257.023	238.380
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		161.521	155.874	169.413
Capital work-in-progress		54.941	34.118	24.342
INVESTMENT		0.001	0.001	0.001
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	73.136	37.605	25.922
	Sundry Debtors	68.388	42.929	34.166
	Cash & Bank Balances	14.154	3.518	2.331
	Other Current Assets	7.434	9.233	10.856
	Loans & Advances	7.679	1.409	2.572
Total Current Assets		170.791	94.694	75.847
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	55.826	23.084	28.724
	Other Current Liabilities	7.561	3.275	1.766
	Provisions	3.809	1.305	0.733
Total Current Liabilities		67.196	27.664	31.223
Net Current Assets		103.595	67.030	44.624
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		320.057	257.023	238.380

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	346.491	145.002	118.647
		Other Income	9.362	7.176	5.500
		TOTAL (A)	355.853	152.178	124.147
Less	EXPENSES
		Material Consumed	263.390	93.511	75.798
		Manufacturing and Other Expenses	64.896	41.411	35.111
		TOTAL (B)	328.286	134.922	110.909
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		27.567	17.256	13.238
Less	FINANCIAL EXPENSES (D)		10.274	8.444	6.711
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		17.293	8.812	6.527
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.751	4.629	4.377
	PROFIT BEFORE TAX (E-F) (G)		12.542	4.183	2.150
Less	TAX (H)		4.550	1.707	1.033
	PROFIT AFTER TAX (G-H) (I)		7.992	2.476	1.117
Add / Less	PRIOR PERIOD TAXATION		(0.346)	0.134	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.548	1.242	0.678
Less	APPROPRIATIONS
		Transfer to General Reserve	0.765	0.252	0.200
		Proposed Dividend	1.822	0.900	0.302
		Tax on Dividend	0.303	0.152	0.051
	BALANCE CARRIED TO THE B/S		7.304	2.548	1.242
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	31.138	27.701	NA
	IMPORTS
		Raw Materials	30.468	1.044	NA
		Capital Goods	0.000	3.248	NA
	TOTAL IMPORTS		30.468	4.292	NA
	Earnings Per Share (Rs.)		8.39	2.90	3.70

Particulars	31.03.2011
Sales Turnover (Approximately)	800.000

The above information has been parted by Mr. Ravindra Mali.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.25	1.63	0.90
Net Profit Margin (PBT/Sales)	(%)	3.62	2.88	1.81
Return on Total Assets (PBT/Total Assets}	(%)	3.77	1.67	0.88
Return on Investment (ROI) (PBT/Networth)		0.10	0.04	0.02
Debt Equity Ratio (Total Liability/Networth)		2.02	1.43	1.10
Current Ratio (Current Asset/Current Liability)		2.54	3.42	2.43

LOCAL AGENCY FURTHER INFORMATION

NOTE: The registered office of the company has been shifted from Pride Kumar Senateb-303, Senapati Bapat Road, Pune-411005, Maharashtra, India to the present address w.e.f. 01.12.2008.

BUSINESS OUTLOOK AND FINANCIAL RESULTS:

During the year the performance of the Company was satisfactory. Company achieved the total turnover of Rs.346.491 Millions as against Rs.145.002 Millions of the previous year.

After providing for Depreciation of Rs.4.751 Millions and for Interest of Rs.10.274 Millions, Company earned the Profit before Tax of Rs.12.542 Millions as against Rs.4.183 Millions of the previous year.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10111741
Corporate identity number of the company	U29195PN1991PLC061503
Name of the company	SAFEPACK INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Gate No. 1093/1094, At and Post Shiroli, Taluka Rajguru Nagar, Pune – 410 505, Maharashtra, India
Type of charge	Book Debts Movable Property (not being pledge) Immovable Property
Particular of charge holder	State Bank of India, 1548 A, Commercial Branch, Sadashiv Peth, Pune-411030, Maharashtra, India
Email	sbi045108@sbi.co.in
Nature of description of the instrument creating or modifying the charge	1)Supplemental Agreement of Loan for Increase in the overall Limit,2)Supplemental Agreement of Hypothecation of Goods and Assets for Increase in the Overall Limit,3)Letter regarding the grant of Individual Limits within the overall Limit,4)Memorandum of Deposit for creation of Further Charge for Term Loan Overall Limit where the Initial Charge is Created by way of Mortgage by Deposit of Title Deeds(All the Agreements executed for a single modification)
Date of instrument Creating the charge	29.04.2011
Amount secured by the charge	Rs.255.600 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Agreement with the Bank Terms of Repayment As per Agreement with the Bank Margin Raw Material, Stock in Process, Finished Goods, LC and BG 25%, Book Debts/Receivables 40% Extent and Operation of the charge Details of Facilities (Rs. in Millions) Demand Cash Credit: 110.000, Term Loan 1: 25.000, Term Loan 2: 70.000, BG: 5.000, L/C:45.000, Forward Contract 0.600, Total Rs.250.000 Millions 5.600 Millions. Exclusive charge of State Bank of India. The charge on hypothecated and mortgaged assets continues till full repayment of Loan.
Short particulars of the property charged	I) All Present and Future Goods, Book debts and All Other Movable Assets Hypothecated by way of First Charge and Mortgage of Immovable Property of Company at-a) All that Piece and Parcel of Property II) Bearing S. No.1093, N. A. Plot No.3 admeasuring 3850 Sq. Mtrs. situated at Village Shiroli and thereabouts together with construction thereon and to be constructed thereto. III) b) All that Piece and Parcel of N. A. Land bearing Plot No.2 Gat No.1093 admeasuring 3850 Sq. Mtrs. lying at Mouje Shiroli, Tal.Khed, Dist. Pune together with Construction thereon together with the IV) Road to use adjacent access road, open space, easementary rights of other appurtances thereto.
Date of latest modification prior to the present modification	18.04.2010
Particulars of the present modification	Facilities enhanced from Rs.1470 Lacs to Rs.2556 Lacs. Charge on hypo. assets and mortgage on imm. prop. of Co. i.e. Property bearing S. No.1093, N. A. Plot No.3 adm.3850 Sq. Mtrs. at Shiroli and thereabouts together with construction thereon and to be constructed thereto and N.A. Land bearing Plot No.2 Gat No.1093 adm.3850 Sq. Mtrs. at Mouje Shiroli together with Construction thereon and road to use adjacent access road, open space, easementary rights of other app. thereto was extended to secure total facilities

FIXED ASSETS:

· Free hold Land

· Building

· Plant and machinery

· Computers

· Furniture and Vehicles

· Vehicles

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.45.17
UK Pound	1	Rs.73.72
Euro	1	Rs.64.26

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.