MIRA INFORM REPORT

Report Date :

07.12.2011

IDENTIFICATION DETAILS

Name :	BAGLA POLIFILMS LIMITED (w.e.f. 21.03.2011)
Formerly Known As :	BAGLA POLIFILMS PRIVATE LIMITED (w.e.f. 10.11.2009) RANI SATI ENTERPRISES PRIVATE LIMITED
Registered Office :	R No.9, 7 Old Post Office, Street, Ground Floor, Kolkata-700001, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	18.03.1998
Com. Reg. No.:	21-086772
Capital Investment / Paid-up Capital :	Rs. 7.500 Millions
CIN No.: [Company Identification No.]	U25200WB1998PLC086772
TAN No.: [Tax Deduction & Collection Account No.]	CALR06449C
PAN No.: [Permanent Account No.]	AACCR6010N
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Supplier of Poli Oil Film
No. of Employees :	Not Available

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 99000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company is under pressure. 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 :	R No.9, 7 Old Post Office, Street, Ground Floor, Kolkata-700001, West Bengal, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	bpdkolkata@hotmail.com
Corporate Office :	B-2/8, Safdarjung Enclave, New Delhi-110029, India
Factory :	Plot No.16 and 17, KIE Industrial Estate, Village-Mundlyaki, Parganga Mangalour, Thesil Roorkee, District Haridwar-247667, Uttarakhand, India
Tel. No.:	91-1332-229743

DIRECTORS

AS ON 30.09.2011

Name :	Ms. Pushpa Devi Bagla
Designation :	Director
Address :	B-2/7, Safdarjung Enclave, Delhi-110029, India
Date of Birth/Age :	10.07.1942
Date of Appointment :	09.05.2003
DIN No.:	01094722

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U25200WB1998PLC086772	BAGLA POLIFILMS LIMITED	Director	09-05-03	09-05-03	Active	NO
2	U51109WB2006PTC108394	BHUTNATH TRADELINK PRIVATE LIMITED	Director	25-04-06	25-04-06	Active	NO
3	U51909WB2004PTC100657	AGARWAL TRACOM PRIVATE LIMITED	Director	02-04-07	02-04-07	Active	NO

Name :	Mr. Madhusudan Lalit Kumar Bagla
Designation :	Managing Director
Address :	B-2/7, Safdarjung Enclave, Delhi-110029, India
Date of Birth/Age :	16.03.1963
Date of Appointment :	28.01.2009
DIN No.:	01425646

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U24306DL1982PLC014573	HINDUSTAN FOLILS LIMITED	Director	23-10-82	23-10-82	Active	NO
2	L74899DL1988PLC031191	HINDUSTAN ADHESIVES LIMITED	Managing director	01-04-09	05-04-88	Active	NO
3	U51109WB2006PTC108394	BHUTNATH TRADELINK PRIVATE LIMITED	Director	24-07-06	24-07-06	Active	NO
4	U51909WB2004PTC100657	AGARWAL TRACOM PRIVATE LIMITED	Director	02-04-07	02-04-07	Active	NO
5	U25200WB1998PLC086772	BAGLA POLIFILMS LIMITED	Managing director	19-09-09	28-01-09	Active	NO

Name :	Mr. Lalit Kumar Bagla
Designation :	Director
Address :	B-2/7, Safdarjung Enclave, Delhi-110029, India
Date of Birth/Age :	25.09.1941
Date of Appointment :	28.01.2009
DIN No.:	01596548

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L74899DL1988PLC031191	HINDUSTAN ADHESIVES LIMITED	Director	25-04-88	25-04-88	-	Active	NO
2	L51909WB1983PLC035769	UMESH COMMERCIAL COMPANY LIMITED	Director	05-06-89	05-06-89	17-03-09	Active	NO
3	U74899DL1984PTC017615	DELHI FOILS PRIVATE LIMITED	Managing director	10-02-94	10-02-94	16-03-08	Active	NO
4	U25200WB1998PLC086772	BAGLA POLIFILMS LIMITED	Director	30-09-09	28-01-09	-	Active	NO
5	U51909WB2004PTC100657	AGARWAL TRACOM PRIVATE LIMITED	Director	01-06-09	01-06-09	-	Active	NO
6	L27201WB1982PLC035136	ALORA TRADING COMPANY LIMITED	Director	24-05-10	24-05-10	-	Active	NO

Name :	Mr. Dinesh Chandra Ray
Designation :	Director
Address :	Mahuja Chatla, JL No.93, Jumki Egar Purba, Midnapore-721448, West Bengal, India
Date of Birth/Age :	02.11.1959
Date of Appointment :	20.04.2006
DIN No.:	01613604

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U51109WB2005PTC103358	SYNERGY COMMERCE PRIVATE LIMITED	Director	28-05-05	28-05-05	Active	NO
2	U25200WB1998PLC086772	BAGLA POLIFILMS LIMITED	Director	20-04-06	20-04-06	Active	NO
3	U80903WB2005PTC103154	SAPHIRE HOSPITALITY MANAGEMENT PRIVATE LIMITED	Director	23-06-06	23-06-06	Active	NO
4	U52190WB2011PTC159569	LEONARD COMMOSALES PRIVATE LIMITED	Director	25-02-11	25-02-11	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Pushpa Devi Bagla	10300
Lalit Kumar Bagla	26000
Dhruv Bagla U/G M.S.Bagla	100400
Madhusudan Bagla	35000
Nakul Bagla	73600
Hamsafar Vanijya Private Limited, India	62400
Surya Consumer Goods Private Limited, India	353000
Synergy Commerce Private Limited, India	75300
Agarwal Tracom Private Limited, India	14000
Total	750000

AS ON 30.09.2011

Equity Shares Break Up	Percentage
Bodies corporate	67.30
Directors or relatives of Directors	32.70
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Supplier of Poli Oil Film

Products :

ITC CODE	PRODUCTS
3920 20 20	BOPP Film

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Plasso Film	MT	1877	51039

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Allahabad Bank, International Branch, 17, Parliament Street, New Delhi-110001, India

· State Bank of Mysore, Industrial Finance Branch, Gloe Market, New Delhi, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Term Loans
Allahabad Bank	60.487	85.955
State Bank of Mysore	57.037	38.403
Working Capital Loans
Allahabad Bank	18.550	0.000
Total	136.074	124.358
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Directors	6.476	0.000
From Body Corporate	55.565	18.493
Total	62.041	18.493
Notes: The Loans are secured against Equitable mortgage of Factory land and building and hypothecation of plant and machinery in favour of Allahabad Bank on pari passu basis with State Bank of Mysore, Equitable mortgage of property No. B-2/8, Safdarjung Enclave, New Delhi, belonging to M/s Agarwal Tracom Private Limited an associate company, corporate guarantee of two associate companies M/s Agarwal Tracom Private Limited and Hindustan Adhesive Limited and personal guarantee of Mr. Lalit Kumar Bagla, Mrs. Pushpa Devi Bagla and Mr. Madhu Sudan Bagla directors of the company. The Installments due within the period of next 12 months are Rs. 26.952 Millions (Rs. 25.940 Millions)

Banking Relations :	--
Auditors :
Name :	Salarpuria and Partners Chartered Accountant
Address :	1008, Chiranjiv Tower, 43, Nehru Place, New Delhi-110001, India
Pan No.:	AAOPG3160H
Where Control Exist :	· Hindustan Foil limited · Agarwal Tracon Private limited · Hindustan Adhesives Limited · Surys Consumers Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs.10/- each	Rs. 12.500 Millions

Issued, Subscribed & Paid-up Capital :

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

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		7.500	7.500	7.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		17.438	29.609	29.819
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		24.938	37.109	37.319
LOAN FUNDS
1] Secured Loans		136.074	124.358	0.000
2] Unsecured Loans		62.041	18.493	5.667
TOTAL BORROWING		198.115	142.851	5.667
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		223.053	179.960	42.986
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		180.094	175.987	6.995
Capital work-in-progress		0.000	0.000	3.638
INVESTMENT		0.741	0.741	0.741
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.360	5.489	0.500
	Sundry Debtors	14.922	0.006	0.000
	Cash & Bank Balances	3.976	7.876	2.363
	Other Current Assets	1.250	1.149	0.008
	Loans & Advances	0.570	4.267	28.804
Total Current Assets		48.078	18.787	31.675
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	4.046	14.842	0.000
	Other Current Liabilities	1.790	0.784	0.152
	Provisions	0.079	0.000	0.000
Total Current Liabilities		5.915	15.626	0.152
Net Current Assets		42.163	3.161	31.523
MISCELLANEOUS EXPENSES		0.055	0.071	0.089
TOTAL		223.053	179.960	42.986

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	77.087	0.157	0.000
		Other Income	6.160	0.050	0.090
		TOTAL (A)	83.247	0.207	0.090
Less	EXPENSES
		Material Consumed	62.888	0.118
		Manufacturing Expenses	13.571	0.049	0.078
		Administrative Expenses	2.397	0.043
		Employees Remuneration and Benefits	4.607	0.015
		Sales and Distribution Expenses	1.557	0.000
		Increase in Stock	(18.333)	(0.013)
		TOTAL (B)	66.687	0.212	0.078
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		16.560	(0.005)	[Including Financial
					Expenses
Less	FINANCIAL EXPENSES (D)		19.868	0.135	And
					Depreciation]
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		(3.308)	(0.140)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.863	0.069
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		(12.171)	(0.209)	0.012
Less	TAX (H)		0.000	0.000	0.004
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(12.171)	(0.209)	0.008
Less	FBT FOR EARLIER YEARS		0.000	0.000	0.005
Add	EXCESS PROVISION WRITTEN OFF		0.000	0.000	0.010
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.021	0.230	0.217
	BALANCE CARRIED TO THE B/S		(12.150)	0.021	0.230
	EXPORT VALUE		4.273	0.000	0.000
	IMPORTS
		Capital Goods	NA	113.108	NA
	TOTAL IMPORTS		NA	113.108	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(14.62)	(100.97)	8.89
Net Profit Margin (PBT/Sales)	(%)	(15.79)	(133.12)	0.00
Return on Total Assets (PBT/Total Assets}	(%)	(5.33)	(0.11)	0.03
Return on Investment (ROI) (PBT/Networth)		(0.49)	(0.01)	0.00
Debt Equity Ratio (Total Liability/Networth)		8.18	4.27	0.16
Current Ratio (Current Asset/Current Liability)		8.13	1.20	208.39

LOCAL AGENCY FURTHER INFORMATION

STATE OF THE COMPANY’S AFFAIRS:

The company had commenced commercial production of Polyolefin Shrink Films from the 30^th March, 2010, and in the year, it has been able to establish the market for this product both in the Domestic and as well the international market. The quality of the finished product have been appreciated by most of the customers in India and also globally and the company is hopeful of using maximum capacity in the next financial year ending March, 2012. The operations of the machines have been very successful and the Company has been able to manufacture a wide range of POF shrink films used for Display Packaging. It is envisaged that this will bring good results to the Company in the years to come and allow the company to grow and become a leader in this business.

The factory set up in the State of Uttarakhand, is a state of the art facility of international standards and they thank both their Bankers for their support in financing the Unit as also the State Government for their support and fiscal incentives provided for setting up new manufacturing units in the State.

FORM 8

Corporate identity number of the company	U25200WB1998PTC086772
Name of the company	BAGLA POLIFILMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	R No.9, 7 Old Post Office, Street, Ground Floor, Kolkata-700001, West Bengal, India
This form is for	Creation of charge
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	Allahabad Bank, International Branch, 17, Parliament Street, New Delhi-110001, India
Nature of instrument creating charge	Inter Se Agreement, Letter of Authority form SBOM, List of charge holder.
Date of instrument Creating the charge	20.04.2010
Amount secured by the charge	RS. 16.600 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Allahabad Bank- ROI shall be charge presently 12.00% p. a. with monthly rest, and SBOM- ROI shall be charge presently 12.25% p.a. with monthly rests Terms of repayment Allahabad Bank- TL loan of Rs. 85.200 millions shall be repaid in 20 quarterly installment of Rs. 426.000 millions each starting form June 2010 (after moratorium period of one year to be reckoned form may 2009.) State Bank of Mysore - TL Rs. 44.500 millions shall be repaid 20 quarterly installment of Rs. 2.225 millions each starting form June 2010. Margin Allahabad Bank- TL loan of Rs. 85.200 millions 25% State Bank of Mysore - TL Rs. 44.500 millions 25% Extent and operation of the charge Charge on First pari passu basis in favour of Allahabad Bank (Lead Bank) and State Bank of Mysore (Member Bank) on company immovable property and plant and machinery of the co is to secure following Credit limits.1.Allahabad Bank- TL loan of Rs.85.200 millions 2.State Bank of Mysore - TL Rs. 44.500 millions Aggregate limit of Rs.129.700 millions.
Short particulars of the property charged (Including location of the property)	charge on First Pari-Passu basis in favour of Allahabad Bank (Lead Bank) and with Consortium member state Bank of Mysore on following ;- Prime- Equitable mortgage of factory land and building (proposed) at plot No. 16 and 17 in KIE Industrial Estate falling in Khasra No.366, 369 and 370 measuring 3600sq. mtrs at Village Mundiaki Paragana Mangolpur Tehsil Roorki, District Hardwar, (Uttarakhand) standing in the name of company M/s Rani Sati Enterprises Private Limited having purchase value of Rs. 311.000 millions including stamp duty. Hypothecation of plant and machinery to be created out of Bank's proposed term loan and promoter's margin.

FIXED ASSETS

· Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixtures

· Computers

· Air Conditioner

· 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. 51.39
UK Pound	1	Rs. 80.20
Euro	1	Rs. 68.92

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
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	2
--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		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.