MIRA INFORM REPORT

Report Date :

25.01.2011

IDENTIFICATION DETAILS

Name :	INTERLABELS INDUSTRIES PRIVATE LIMITED
Registered Office :	12, Ravi Industrial Estate, Off Mahakali Caves Road, Andheri (East), Mumbai-400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	16.10.1995
Com. Reg. No.:	11-93706
CIN No.: [Company Identification No.]	U51900MH1995PTC093706
TAN No.: [Tax Deduction & Collection Account No.]	MUMI05172G
PAN No.: [Permanent Account No.]	AAACI5684H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of Premium Quality Labels, Labelling Machines, Hand Labellers and Barcode Solutions.

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 464016
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well 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 DECLINED BY

Name :	Mr. Bhavya Joshi
Designation :	Marketing Manager
Tel No:	91-9769711957
Date :	25.01.2011

LOCATIONS

Registered Office :	12, Ravi Industrial Estate, Off Mahakali Caves Road, Andheri (East), Mumbai-400093, Maharashtra
Tel. No.:	91-22-32428522
E-Mail :	ssj_sol@rediffmail.com sis_vishal@hotmail.com
Website :	http://www.interlabels.com
Area :	2000 Sq ft
Location :	Owned
Factory :	Nandan Estate, Survey No. 59, Majipada, Western Express Highway, Vasai (East), Thane – 401210, Maharashtra, India
Tel. No.:	91-250-32428522 / 24, 2230091
Fax No.:	91-250-26876495
Corporate Office:	110,Ravi Industrial Estate,Off Mahakali Caves Road,Andheri (East),Mumbai - 93
Tel No:	91-22-65814330/31/32
Fax No:	91-22-26876495
Branch Office:	DELHI OFFICE 38 DLF Industrial Area,Kirti Nagar,New Delhi – 110015 Tel: 91-11-23324014/39 Fax:91-11-23324106 CHENNAI OFFICE New No.51,Anna Slai,Nagalkeni,Chorompet,Chennai – 600044 Tel: 91-44-43162009 Fax: 91-44-43162008 KOLKATA OFFICE 3A,Chowinghee Place,1^st Floor,Room No.33,Calcuta – 700013 Tel: 91-33-22285955 / 5258 / 5312 Fax:91-33-22286523

DIRECTORS

AS ON 30.09.2009

Name :	Mr. Chandrakant Nandlal Kothari
Designation :	Director
Address :	101, Landmark, Charmicheal Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	08.11.1932
Qualification :	Graduate
Date of Appointment :	16.10.1995
Name :	Mr. Gautam Chandrakant Kothari
Designation :	Director
Address :	101, Landmark, Charmicheal Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	28.06.1967
Qualification :	Graduate
Date of Appointment :	16.10.1995
Name :	Mr. Bhavin Chandrakant Kothari
Designation :	Director
Address :	101, Landmark, Charmicheal Road, Mumbai – 400 026, Maharashtra, India
Date of Birth/Age :	22.08.1961
Qualification :	Graduate
Date of Appointment :	16.10.1995

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2008

Names of Shareholders	No. of Shares
Chandrakant Kothari	1003000
Bhavin C Kothari	205000
Gautam C Kothari	1279000
Bela B Kothari	654000
Kumud C Kothari	20000
Savita Variya	5000
Usha Joshi	10000
Dinesh Bhavsar	5000
Raichand Shah	5000
Hema Chowhan	10000
Maniben Gogri	5000
Dharmendra Bhagat	15000
K N Sanghvi (HUF)	5000
Kamlesh Vora	5000
Rakesh P Shah	5000
Kanjal Maniyar	5000
Nilesh Hapani	5000
Kajal D Shah	5000
Jyoti Joshi	5000
Anil Shah	5000
Jayantilal Shah	10000
Jitendra Kothari	15000
Mahendra Shah	10000
Mukesh Parekh	10000
Shashikant Patel	5000
Dinesh Thakkar	5000
Kalpesh R Shah	15000
Janak Joshi	5000
Bhanumati Mehta	5000
Kamlesh Shah	10000
Kanchan Gandhi	10000
Sanjay K Gandhi	5000
Jignesh Sanghvi	10000
Thakorlal Pakai	20000
Bharati Gosar	15000
Pranay Pakai	5000
Shailesh Vora	5000
Vinod V Shah	5000
Nilesh Parekh	5000
Naresh Shah	10000
Vaishali Doshi	10000
Ketan P Gandhi	5000
Denesh N Shah	10000
Jagdish Thakkar	5000
Everest Pkg. Private Limited, Mumbai	9000
Total	3475000

Equity share breakup AS ON 30.09.2009

Category	Percentage
Directors or relatives of directors	90.96
Others	9.04
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and Exporters of Premium Quality Labels, Labelling Machines, Hand Labellers and Barcode Solutions.
Products :	· Labelling machine · Hand labellers · Self-adhesive labels · Barcode Solutions
Exports :
Countries :	· African Countries · Arab Countries
Terms :
Selling :	Cash, Credit (30 days / 60 days / 90 days)
Purchasing :	L/C,Cash, Credit (30 days / 60 days / 90 days)

GENERAL INFORMATION

Customers :	· OEM’s · End Users
No. of Employees :	200 (Approximately)
Bankers :	The Saraswat Co-operative bank Limited, SME Ville Parle Branch, Bholanath Co-op Hsg Soc, Subhash Road, Vile parle East, Mumbai – 400092, Maharashtra, India
Facilities :	--

Banking Relations :	--
Auditors :	Mahesh P and Company Chartered Accountants
Address :	26/A Shindewadi, Dr. Ambedkar Road, Dadar, Mumbai – 400 014, Maharashtra, India
Sister Concern	Intercode Address: Mumbai

CAPITAL STRUCTURE

As on 29.09.2008

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3475000	Equity Shares	Rs.10/- each	Rs.34.750 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2010
Sales Turnover (Approximately)	850.00

Expected Sales (2010-2011) : Rs.1000.00 Millions

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		34.750	34.750	34.750
2] Share Application Money		0.100	0.100	0.100
3] Reserves & Surplus		81.154	75.715	61.057
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		116.004	110.565	95.907
LOAN FUNDS
1] Secured Loans		211.696	234.923	154.375
2] Unsecured Loans		55.420	37.494	51.297
TOTAL BORROWING		267.116	272.417	205.672
DEFERRED TAX LIABILITIES		25.914	22.939	20.079
TOTAL		409.034	405.921	321.658
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		226.508	222.100	197.161
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		13.713	13.473	5.832
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	80.843	79.309	78.297
	Sundry Debtors	134.776	180.204	143.147
	Cash & Bank Balances	11.152	12.749	5.031
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	36.215	45.383	41.482
Total Current Assets		263.586	317.645	267.957
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities and Provisions	98.499	152.618	149.816
Total Current Liabilities		98.499	152.618	149.816
Net Current Assets		165.087	165.027	118.141
MISCELLANEOUS EXPENSES		3.726	5.321	0.524
TOTAL		409.034	405.921	321.658

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	640.329	640.490	554.678
		Other Income	3.495	2.469	2.984
		TOTAL	643.824	642.959	557.662
Less	EXPENSES
		Raw Material Consumed	464.048	453.226	405.788
		Manufacturing and Other Expenditure	31.456	32.052	37.091
		Employees Remuneration and Benefits	39.250	36.599	26.571
		Managerial Remuneration	1.455	1.545	1.505
		Administrative Expenses	48.238	60.845	55.162
		Increased / Decreased in Stock	(1.918)	(1.039)	(17.679)
		TOTAL	582.529	583.228	508.438
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		61.295	59.731	49.224
Less	FINANCIAL EXPENSES		34.042	25.583	22.475
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		27.251	34.148	26.749
Less	DEPRECIATION/ AMORTISATION		14.734	13.505	7.711
	PROFIT BEFORE TAX		12.518	20.643	19.038
Less	TAX		7.078	5.986	7.093
	PROFIT AFTER TAX		5.440	14.657	11.945
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		68.964	54.307	42.362
	BALANCE CARRIED TO THE B/S		74.404	68.964	54.307
	Earnings Per Share (Rs.)		3.12	5.04	---

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	0.84	2.28	2.14
Net Profit Margin (PBT/Sales)	(%)	1.95	3.22	3.43
Return on Total Assets (PBT/Total Assets}	(%)	2.55	3.82	4.09
Return on Investment (ROI) (PBT/Networth)		0.11	0.19	0.20
Debt Equity Ratio (Total Liability/Networth)		3.15	3.84	3.71
Current Ratio (Current Asset/Current Liability)		2.67	2.08	1.79

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Sundry Creditors details are not available.

Form 8:

Name of the company	INTERLABELS INDUSTRIES PRIVATE LIMITED
Presented By	The Saraswat Co-operative Bank Limited, Borivli Branch, Mumbai
1) Date and description of instrument creating the change	Agreement of Hypothecation of Movable Property dated 16 February 2005
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 5.000 Millions (Rs Five Millions Only)
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	Hypothecation of all the plant and machinery (Gallous EM280 Flexo (2002 model), tangible movable property including the stocks for the time being whether new or manufactured or in process of manufacturing and every tangible movable property/machinery/plant (both present and future) belonging to the borrower and lying and being at the Borrowers place of business.
4) Gist of the terms and conditions and extent and operation of the charge.	R.O.I. 11.50% p.a. or such other percentage as the bank may from time to time fix. This is Term Loan Facility
5) Name and Address and description of the person entitled to the charge.	The Saraswat Co-operative bank Limited Borivali Branch, Kesar Kripa, Chandavarkar Lane, Borivli (west), Mumbai – 400 092

This form is for	Modification of charge
Charge identification number of the modified	90160353
Corporate identity number of the company	U51900MH1995PTC093706
Name of the company	INTERLABELS INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	12, Ravi Industrial Estate, Off Mahakali Caves Road, Andheri (East), Mumbai-400093, Maharashtra
Type of charge	Immovable Property
Particular of charge holder	The Saraswat Co-operative bank Limited Borivali Branch, Borivali (West), Mumbai – 400 092, Maharashtra, India
Nature of description of the instrument creating or modifying the charge	Supplementary Recording Letter Evidencing Deposit of Title Deeds.
Date of instrument Creating the charge	25.03.2009
Amount secured by the charge	Rs. 37.200 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 15% p.a. or at such rate as may be determined by the Bank from time to time. Terms of Repayment 66 Months Margin 30% Extent and Operation of the charge This is Term Loan III Facility Others
Short particulars of the property charged	Mortgage by deposit of title deed property lying, being and situate at survey no.59, village Maljipada W E Highway, Vasai District Thane solely belonging to the Company and more particularly described in the schedule no. II attached herewith.
Date of latest modification prior to the present modification	26.02.2008

Corporate identity number of the company	U51900MH1995PTC093706
Name of the company	INTERLABELS INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	12, Ravi Industrial Estate, Off Mahakali Caves Road, Andheri (East), Mumbai-400093, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable Property
Particular of charge holder	The Saraswat Cooperative Bank Ltd
Nature of instrument creating charge	Supplementary Recording Letter Evidencing Deposit of Title Deeds
Date of instrument Creating the charge	02/11/2010
Amount secured by the charge	Rs.43.200 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 14% p.a. or at such rate as maybe determined by the bank from time to time Terms of Repayment 60 months Margin 25% in bank's favour Extent and Operation of the charge This is term loan facility
Short particulars of the property charged	Mortgage by deposit of title deed property lying, being and situate at survey no 59, village Maljipada W E Highway Vasai Dist Thane solely belonging to the company and more particularly described in the schedule no II attached herewith.
Date of instrument modifying the charge	25/03/2009
Particulars of the present modification	New term loan of Rs.6.000 Millions granted. Overall limit secured by immovable property at Vasai Dist Thane is enhanced from Rs.37.200 Millions to Rs.43.200 Millions

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.45.58
UK Pound	1	Rs.72.79
Euro	1	Rs.62.01

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	6
--LEVERAGE	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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	Unfavourable & favourable factors carry similar weight in credit consideration. 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

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.