MIRA INFORM REPORT

Report Date :

08.11.2011

IDENTIFICATION DETAILS

Name :	CIGFIL LIMITED
Registered Office :	No.37, Armenian Street, Chennai – 1, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	03.08.1970
Com. Reg. No.:	18-005883
Capital Investment / Paid-up Capital :	Rs. 1.422 Millions
CIN No.: [Company Identification No.]	U16000TN1970PLC005883
TAN No.: [Tax Deduction & Collection Account No.]	CHEC00079C
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturer of Cigarette Filter
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 480000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is an old and established company having good track. General financial position is good track records. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported to be 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 – 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

INFORMATION DECLINED BY

Name :	Mr. Ravindran
Designation :	Accounts Manager
Date :	29.11.2011

LOCATIONS

Registered Office :	No. 37, Armenian Street, Chennai – 600001, Tamilnadu, India
E-Mail :	cigfil@vsnl.com panch@cigfil.com ravindran@cigfil.com
Website :	http://www.cifgil.com
Corporate Office :	#70, Tumkur Road, Yeshwantpur, Bangalore – 560022, Karnataka, India
Tel. No.:	91-80-23370443 / 23370452 / 23375678
Fax No.:	91-80-23377981
E-Mail :	cigfil@vsnl.com

DIRECTORS

AS ON 09.09.2010

Name :

Mr. Anil Lajpatrai

Designation :

Director

Address :

803, Athens Presting, A Acreopolis – 560029, Bangalore, Karnataka, India

Date of Birth/Age :

01.10.1964

Date of Appointment :

18.09.2008

Name :

Mr. Kamlesh Ram Tejwani

Designation :

Director

Address :

95, Falmouth Street, Short Hills, New Jersey – 07078

Date of Birth/Age :

19.08.1960

Date of Appointment :

18.09.2008

Name :

Mr. Ramanathan Panchapakesan

Designation :

Managing Director

Address :

No. 182, 1^st Main Mahalakshmi Layout, Bangalore – 560086, Karnataka, India

Date of Birth/Age :

16.10.1952

Date of Appointment :

28.10.2010

Din No.:

00515881

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	U25209KA1998PTC023840	INNOVA POLYPAK PRIVATE LIMITED	Director	30/07/1998	30/07/1998	16/07/2009	Active	NO
2	U25209KA1999PTC026059	BUILDMET FIBRES PRIVATE LIMITED	Director	9/12/1999	9/12/1999	-	Active	NO
3	U51101KA2002PTC030027	FOOD CREATIONS PRIVATE LIMITED	Managing director	22/01/2002	22/01/2002	-	Active	NO
4	U14339KA1993PTC014339	SHAKTHI KIRAN FOODS PRIVATE LIMITED	Managing director	10/10/2002	10/10/2002	-	Active	NO
5	U16000TN1970PLC005883	CIGFIL LIMITED	Managing director	28/10/2010	28/10/2010	-	Active	NO

Name :

Mr. Subbiachettiar Thangavel

Designation :

Director

Din No.:

00870483

Name :

Mr. Panchapakesan Malathi

Designation :

Director Appointed in Casual

Din No.:

02005363

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	U25209KA1997PTC023044	INNOVA POLYTEX PRIVATE LIMITED	Director	29/10/1998	29/10/1998	-	Active	YES
2	U50101KA1998PTC024476	INNOVA CARTONS PRIVATE LIMITED	Director	2/12/1998	2/12/1998	-	Active	YES
3	U18101KA2004PTC034092	INNOVA APPARELS PRIVATE LIMITED	Managing director	8/6/2004	8/6/2004	-	Active	NO
4	U24246KA2006PTC038423	INNOVA CONSUMER CARE PRIVATE LIMITED	Director	8/2/2006	8/2/2006	-	Active	NO
5	U74900KA2010PTC052725	TARGET MULTIPACK INDIA PRIVATE LIMITED	Director	26/02/2010	26/02/2010	-	Active	NO
6	U16000TN1970PLC005883	CIGFIL LTD	Director appointed in casual vacancy	15/07/2010	15/07/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 24.09.2010

Names of Shareholders	No. of Shares
Allgreen Energy Pte Limited, Singapore	497131
Ram Kamlesh Tejwani	1
Total	497132

AS ON 24.09.2010

Equity Shares Break Up	Percentage
Directors or relatives of Directors	80.00
Other top fifty shareholders	20.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cigarette Filter

Products :

Item Code No.	Product Description
56012200	Cigarette Filter Rod
39232990	P P Woven Sacks and Allied products
39269080	P P Woven Fabrics

PRODUCTION STATUS (AS ON : 31.03.2010)

Particulars	Installed Capacity	Actual Production
Cigarette Filter Rods	4400.000 MNR	2720.6199 MNR
Polypropylene Woven Fabrics / Sacks	5400.00 MTs	2175.080 MTs

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• State Bank of Mysore, , Corporate Accounts Branch, Ramanashree Arcade, no.18, M G road, Bangalore, - 560001, Karnataka, India
• Kotak Mahindra Bank

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Bills Payable accepted	26.265	31.547
Bills Purchase Acco8unt	19.732	15.354
Export Packing Credit – SBM / IFB	55.871	51.767
Term Loan – I SBM / IFB	29.106	53.569
Term Loan – II SBM / IFB	20.212	0.000
Cash Credit – SBM / IFB	59.767	0.000
Kotak Mahindra Finance Limited	1.087	1.680
Total	212.041	211.115

Banking Relations :	----
Auditors :
Name :	Mr. N. Naresh Chartered Accountant
Address :	1113, 10^th D, Cross, 11^th Main Mahalakshimipuram, Bangalore – 560086, Karnataka, India
Pan No.:	ABEPN1476C

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs.100/- each	Rs. 2.500 Millions

Issued :

No. of Shares	Type	Value	Amount
15064	Equity Shares	Rs.100/- each	Rs. 1.506 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
14220	Equity Shares	Rs.100/- each	Rs. 1.422 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		1.422	1.422	1.422
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		117.599	110.463	103.909
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		119.021	111.885	105.331
LOAN FUNDS
1] Secured Loans		212.041	211.115	172.174
2] Unsecured Loans		32.835	24.235	24.035
TOTAL BORROWING		244.876	235.350	196.209
DEFERRED TAX LIABILITIES		2.538	1.957	1.675
TOTAL		366.435	349.192	303.215
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		181.545	188.909	180.641
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.209	0.209	0.193
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	115.252	110.062	130.901
	Sundry Debtors	164.857	148.484	91.809
	Cash & Bank Balances	4.297	2.808	1.646
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	82.120	76.882	63.046
Total Current Assets		366.526	338.236	287.402
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	120.088	124.259	149.323
	Other Current Liabilities	42.675	36.939
	Provisions	19.082	16.964	15.698
Total Current Liabilities		181.845	178.162	165.021
Net Current Assets		184.681	160.074	122.381
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		366.435	349.192	303.215

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	525.496	533.050	470.691
		Service Income	31.471	32.347	27.330
		Other Income	11.169	12.191	102.048
		Labour Charges Received	91.039	199.008	129.335
		TOTAL (A)	659.175	776.596	729.404
Less	EXPENSES
		Manufacturing and Other Expenses	546.732	657.126	584.290
		Administrative Expenses	52.048	59.651	62.694
		TOTAL (B)	598.780	716.777	646.984
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		60.395	59.819	82.420
Less	FINANCIAL EXPENSES (D)		28.836	30.543	29.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		31.559	29.276	53.420
Less/ Add	DEPRECIATION/ AMORTISATION (F)		21.727	21.174	21.760
	PROFIT BEFORE TAX (E-F) (G)		9.832	8.102	31.660
Less	TAX (H)		2.698	1.548	7.299
	PROFIT AFTER TAX (G-H) (I)		7.136	6.554	24.361
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		108.397	101.843	77.481
	BALANCE CARRIED TO THE B/S		115.533	108.397	101.843
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	146.654	162.507	204.425
	TOTAL EARNINGS		146.654	162.507	204.425
	IMPORTS
		Raw Materials	267.147	212.135	1.579
		Stores & Spares	0.854	0.617	0.299
	TOTAL IMPORTS		268.001	212.752	1.878
	Earnings Per Share (Rs.)		501.86	460.92	---

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.08	0.84	3.33
Net Profit Margin (PBT/Sales)	(%)	1.87	1.51	6.72
Return on Total Assets (PBT/Total Assets}	(%)	1.79	1.53	6.76
Return on Investment (ROI) (PBT/Networth)		0.08	0.07	0.30
Debt Equity Ratio (Total Liability/Networth)		3.58	3.69	3.42
Current Ratio (Current Asset/Current Liability)		2.01	1.89	1.74

LOCAL AGENCY FURTHER INFORMATION

FILTER RODS DIVISION :

The Company could retain the sales volume and productivity of Filter Rods during the year despite tough circumstances. The situation of invertered Duty Structure for the finished goods viz duty paid on raw materials, introduced by the Union Budget 2009, has been rectified from May 2010, mitigating the hardship.

POLYMER DIVISION:

Polymer Division also could maintain the sales volume and productivity during the year inspite of world recessionary trends. During year capital investment of Rs.2.500 millions in balancing equipments to smoothen Production process have been made. The company's marketing efforts focused on expanding customer base in US has yielded dividends with increasing volumes in pipeline to be executed in the ensuing year. To gear up to meet the increasing demand by the overseas customers the Company has planning an investments to build an additional floor space 30,000 sq.ft .

APPARELS DIVISION:

There has been slump in the Garment industry which has affected reduction in conversion billings - there has been reduction of over 60% during the year as compared to previous year. There has been significant learning from the garment marketing upheavals the last 2 years. Even with the orders pouring from major export markets ( US and EU) the Indian Apparel Exporters are not able to cash - in the opportunity unprecedented rise in cotton prices. The situation now has eased with gradual pickup in the orders position and ITC evincing keying interest underwriting the full production capacity of our Unit II at Hosakote.

PACKAGING DIVISION:

With imposing levy of Import duty on Roll your Own cigarettes by US Government, there is downward trend in the industry. However the Management is exploring possibilities of business opportunities with ITC..

FUTURE PROSPECTS:

The implementation of the Statutory pictorial warnings on cigarette pockets has been deferred by the Government; this along with the change in length of Filter Rods has planned by our Major Customers would entail increased volumes and revenue. The Directors exude great confidence in growing potential of FIBC Exports and hence all necessary efforts are being put to exploit the opportunities. To focus on Cost Reduction, Increase in Productivity and better working capital management the Company plans to SAP B -1 during the course of the current year

FORM 8

Corporate identity number of the company	U16000TN1970PLC005883
Name of the company	CIGFIL LIMITED
Address of the registered office or of the principal place of business in India of the company	NO.37, Armenian Street,Chennai-1, Tamil Nadu – 600001, INDIA
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	State Bank of Mysore, , Corporate Accounts Branch, Ramanashree Arcade, no.18, M G road, Bangalore, - 560001, Karnataka, India
Nature of instrument creating charge	Agreement of Loan-Cum-Hypothecation Sme - 2 And Letter of Confirmation For Extension of Mortgage By Deposit of Title Deeds Sme - 8 (Both Pertain To The Same Charge)
Date of instrument Creating the charge	25/09/2010
Amount secured by the charge	Rs. 395.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 1) WCL - At 4.00% Above Br, Effective Rate 11.75% per Annum 2) TL new - AT 4.25% Above Br, Effective Rate 12.00% per annum existing limits as per existing terms of sanction. Terms of repayment WCL - on demand. Advance is for a period of 12 months. TI new - in 20 Quarterly installments of Rs. 1.125 millions each commencing from Quarter ending September 2011. Existing limits as per existing terms of sanction. Margin RM/SIP/FG : 25% RECEIVABLES/BD : 50% LC/BG : 10% TL NEW - 36% Extent and operation of the charge Exclusive first charge on the assets of the company and to the full extent. Other Cash Credit Rs.60.000 millions, EPC Rs 50.000 CRS; FDBP/FUBP RS 40.000 millions; LC RS 60.000 millions, BG 2.500 millions; TL-1 RS 140.000 millions; CL RS 20.000 millions; TL-2 RS 22.500 millions; TOTAL Rs 395.000 millions.
Short particulars of the property charged (Including location of the property)	Hypothication of company's present and future movable fixed assets and current assets like stocks, raw materials, semi finished and finished goods, book debts, receivables, outstanding monies, bills, rights, stores, components, furniture and fittings; other movables, plant and machinery, vehicles and assets to be purchased out of bank finance. Equitable mortgage of land and building situated at SY. 28,29, and 26 AT Kacharakanahalli Village, Jadigenahalli Hobli, Hoskote Taluk, Bangalore Rural District. Equitable mortgage of land and building situated at sy. no. 8, Thanneranahalli, Yeshwanthpura Hobli, Bangalore North Taluk, Tumkur Road, Bangalore. Equitable mortgage of land and building situated at sy. No.70, tumkur road, Yeshwanthpura, Bangalore Extension of Scope of Equitable Mortgage of Land And Building Situated At Flat No. A-704 and B-702, Ramanajyothi Apartments, Tumkur Road, Bangalore And Industrial Shed Bearing No.293B, 2nd Stage, Peenya Industrial Estate, Bangalore
Date of instrument modifying the charge	12/10/2009
Particulars of the present modification	The amount secured by the charge stands increased to Rs. 395.000 millions. The securities described and detailed in col no 15 herein above continue for the enhanced limit. All other terms and conditions remain unchanged.

FIXED ASSETS :

• Filter Road Division
• Polymers Division
• Building
• Land
• Plant and Machinery
• R and D Equipments
• Electrical Installation
• Office Equipments
• Motor Vehicles
• Other Vehicles
• Furniture and Fittings

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	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.