MIRA INFORM REPORT

Report Date :

28.07.2011

IDENTIFICATION DETAILS

Name :	BBF INDUSTRIES LIMITED (w.e.f. 23.02.2010)
Formerly Known As :	BHARAT BOX FACTORY LIMITED
Registered Office :	Village Bhamian Kalan, Tajpur Road, Ludhiana – 141 008, Punjab
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	01.07.1996
Com. Reg. No.:	16-018439
Capital Investment / Paid-up Capital :	Rs.140.251 millions
CIN No.: [Company Identification No.]	U74950PB1996PLC018439
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of FMCG Products.

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 5200000
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

LOCATIONS

Registered Office :	Village Bhamian Kalan, Tajpur Road, Ludhiana – 141 008, Punjab, India
Tel. No.:	91-161-2824562-65/ 6614200
Fax No.:	91-161-2824596
E-Mail :	rana@bbfgroup.com client_akh@yahoo.com
Website :	http://www.bbfgroup.com
Delhi Office :	204, AVG Bhawan, M-3, Middle Circle, Connaught Place, New Delhi – 110 001, India
Tel. No.:	91-11-43582636/ 43582604
Fax No.:	91-11-43582604
Samba Office :	SIDCO Industrial Growth Centre, Samba, Jammu and Kashmir
Tel. No.:	91-1923-246432/ 246436
Representative Office :	Located at: · Mumbai
Postal Office :	P.B. 151, Bentpura, Chandigarh Road, Ludhiana – 141008, Punjab, India
Works :	Plot No. 15-18, Industrial Growth Centre, Samba – 184121, Jammu and Kashmir, India

DIRECTORS

As on 30.09.2010

Name :	Mr. Baljinder Kumar Aggarwal
Designation :	Whole-Time Director
Address :	171-R, Model Town, Ludhiana, Punjab, India
Date of Birth/Age :	28.10.1956
Date of Appointment :	02.07.1996
Name :	Mr. Vinay Bawa
Designation :	Director
Address :	55, Nehru Nagar, Model Town, Ludhiana, Punjab, India
Date of Birth/Age :	11.05.1963
Date of Appointment :	01.04.2005
Name :	Mr. Anil Kumar Aggarwal
Designation :	Whole-Time Director
Address :	171-R, Model Town, Ludhiana, Punjab, India
Date of Birth/Age :	04.06.1964
Date of Appointment :	02.07.1996
Name :	Mr. Rajinder Kumar
Designation :	Whole-Time Director
Address :	583-L, Model Town, Ludhiana, Punjab, India
Date of Birth/Age :	31.10.1949
Date of Appointment :	02.07.1996
Name :	Ms. Achal Ghai
Designation :	Director
Address :	Villa 6, Cluster 40, Jumeirah Islands, P.O. Box No.18264, Dubai, 018264, United Arab Emirates
Date of Birth/Age :	30.08.1963
Date of Appointment :	15.03.2008
Name :	Mr. Parveen Kumar
Designation :	Managing Director
Address :	171-R, Model Town, Ludhiana, Punjab, India
Date of Birth/Age :	06.10.1962
Date of Appointment :	02.07.1996
Name :	Mr. Mahendra Swarup
Designation :	Director
Address :	C-7, Paschimi Marg, Vasant Vihar, New Delhi, India
Date of Birth/Age :	10.05.1953
Date of Appointment :	01.05.2007
Name :	Mr. Vishal Kapur
Designation :	Alternate Director
Address :	M-143, Greater Kailash – 2, New Delhi, India
Date of Birth/Age :	20.08.1971
Date of Appointment :	21.05.2008

KEY EXECUTIVES

Name :	Ms. Sonia Bansal
Designation :	Secretary
Address :	37-A, Model Town, Extension, Ludhiana, Punjab, India
Date of Birth/Age :	08.05.1983
Date of Appointment :	30.10.2010
Name :	Mr. Yogeshwa RI Biduri
Designation :	Secretary
Date of Birth/Age :	16.08.1984
Date of Appointment :	07.07.2010
Date of Ceasing :	30.10.2010

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Rajinder Kumar	1158525
Baljinder Kumar	1045125
Anil Kumar	1097875
Parveen Kumar	1041350
Rajinder Kumar (HUF)	47100
Baljinder Kumar (HUF)	46800
Rachit Aggarwal	106100
Parveen Kumar (HUF)	43600
Nisha Aggarwal	119575
Yuvraj Aggarwal	28200
Parth Aggarwal	13900
Anju Aggarwal	95750
Dilip	41000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	0.02
Bodies corporate	7.33
Directors or relatives of directors	92.65
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of FMCG Products.

Products :

Item Code No. (ITC Code)	481950.90
Product Description	Paper Duplex Cartoons
Item Code No. (ITC Code)	481910.90
Product Description	Corrugated Cartoons
Item Code No. (ITC Code)	380810.91
Product Description	Mosquito Coil
Item Code No. (ITC Code)	340220.90
Product Description	Toilet Cleaner

PRODUCTION STATUS (As on 31.03.2009)

Particulars	2008-09
Installed Capacity (Tons) Duplex Board	29610 TPA
Paper	45140 TPA
Plastic Moulded Articles	9835 TPA
Mosquito Coil	2655.33 Million PA
Toilet Cleaner	11.7 Million PA
Installed Capacity Liquid Vaporiser	2.5 Million PA
Detergent Powder 3	9000 TPA
Detergent Cake	7500 TPA
Con. Phenyle/ Floor Cleaner	7.5 millions PA

Particulars	Actual Production (Qty. in pcs.)
Printed Plain Duplex and Corrugated Cartoons	614028730
Display Card and Wrappers	14286436
Printed Manuals	122009395
Plastic Moulded Articles	147854163
Mosquito Coil	147333360
Toilet Cleaner	2744664
Liquid Vaporiser	131472
Detergent Powder	3740190
Multi Surface Glass Cleaner	7632
Con. Phenyle/ Floor Cleaner	441520
Detergent Cake	23520

GENERAL INFORMATION

Customers :

• Nestle India Limited
• AMUL (Gujarat Co-operative)
• Kangaro Group of Industries
• Oriflame
• Reckitt Benckiser (India) Limited
• Heinz India Private Limited
• Philips
• MDH Spices
• D.S. Group
• Sun-Pharma
• Avon Cycles Limited
• Neva Garments Limited
• Bonn Food Industries
• Supreme Agro Foods (Private) Limited

Bankers :

• The Jammu and Kashmir Bank Limited, Jammu
• State Bank of India, Ludhiana
• Punjab National Bank, Ludhiana
• Citi Bank N.A, Ludhiana
• Standard Chartered Bank, Credit Risk Control, Narain Manzil, 23 Barakhamba Road, New Delhi – 110 001, India

Facilities :

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Term Loan	1929.690	844.883
Working Capital Limits		639.772
Total	1929.690	1484.655

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Directors and Relatives		7.697
From Banks		3.132
From Companies	135.745	71.000
From Others		62.805
Security Deposits		4.000
Total	135.745	148.634

Banking Relations :	--
Auditors :
Name :	Sumat Gupta and Company Chartered Accountants
Address :	B-16/17, G.T. Road, Miller Ganj, Ludhiana – 141 003, Punjab, India
Tel. No.:	91-161-2538968/ 2538969
Fax No.:	91-161-2538968
Subsidiaries :	· Bharat Papers Limited CIN No.: U21093PB2006PLC030592 · Incite Home Care Products Private Limited Cin No.: U52599PB2006PTC030198

CAPITAL STRUCTURE

As on : 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
31000000	Equity Shares	Rs.10/- each	Rs.310.000 millions
900000	0.01% Compulsorily Cumulative Convertible Preference Shares	Rs.100/- each	Rs.90.000 millions
	Total		Rs.400.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5456500	Equity Shares	Rs.10/- each	Rs.54.565 millions
856857	0.01% Compulsorily Cumulative Convertible Preference Shares	Rs.100/- each	Rs.85.686 millions
	Total		Rs.140.251 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		140.251	140.251	140.251
2] Share Application Money		182.200	0.000	0.000
3] Reserves & Surplus		976.795	900.039	687.923
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1299.246	1040.290	828.174
LOAN FUNDS
1] Secured Loans		1929.690	1484.655	1162.646
2] Unsecured Loans		135.745	148.634	183.685
TOTAL BORROWING		2065.435	1633.289	1346.331
DEFERRED TAX LIABILITIES		63.063	81.900	49.494
TOTAL		3427.744	2755.479	2223.999
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1303.601	1289.838	987.631
Capital work-in-progress		164.255	121.035	269.332
INVESTMENT		423.133	279.510	19.853
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	874.141	487.909	479.017
	Sundry Debtors	940.666	793.594	500.413
	Cash & Bank Balances	54.782	21.608	120.666
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	540.795	631.486	573.357
Total Current Assets		2410.384	1934.597	1673.453
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors		479.932	336.780
	Other Current Liabilities	844.622	377.067	389.872
	Provisions	29.007	12.502	(0.382)
Total Current Liabilities		873.629	869.501	726.270
Net Current Assets		1536.755	1065.096	947.183
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3427.744	2755.479	2223.999

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income		3164.905	2707.904
		Other Income		51.960	17.773
		TOTAL (A)	4025.857	3216.865	2725.677
Less	EXPENSES
		Material Consumed		2063.752	1916.163
		Manufacturing Expenses		366.857	257.025
		Excise Duty Provided on stock		(15.482)	16.787
		Personnel Expenses		76.907	63.945
		Advertising Expenses		73.544	61.115
		Selling and Distribution Expenses		75.279	98.377
		TOTAL (B)		2640.857	2413.412
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		3746.320	576.008	312.265
			(Including
Less	FINANCIAL EXPENSES (D)		Financial	197.023	141.629
			And
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		Depreciation	378.985	170.636
			Expenses)
Less/ Add	DEPRECIATION/ AMORTISATION (F)			100.247	71.472
	PROFIT BEFORE TAX (E-F) (G)		279.537	278.738	99.164
Less	TAX (H)		48.926	68.153	22.186
	PROFIT AFTER TAX (G-H) (I)		230.611	210.585	76.978
	Depreciation written back for earlier years		NA	3.204	0.000
	MAT Credit		NA	(1.673)	11.059
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		488.193	276.078	188.041
	BALANCE CARRIED TO THE B/S		570.951	488.194	276.078
	EARNINGS IN FOREIGN CURRENCY
		FOB value of Export	NA	84.979	79.200
	TOTAL EARNINGS		NA	84.979	79.200
	IMPORTS
		Capital Goods (including advances)		27.047	140.592
		Stores & Spares	NA	12.154	0.054
		Raw Materials		1.434	0.000
	TOTAL IMPORTS		NA	40.635	140.646
	Earnings Per Share (Rs.)		11.24	28.87	16.14

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.94	6.55	2.82
Net Profit Margin (PBT/Sales)	(%)	--	8.81	3.66
Return on Total Assets (PBT/Total Assets}	(%)	7.52	8.64	3.73
Return on Investment (ROI) (PBT/Networth)		0.21	0.27	0.12
Debt Equity Ratio (Total Liability/Networth)		2.26	2.41	2.50
Current Ratio (Current Asset/Current Liability)		2.75	2.22	2.30

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE REVIEW

The company continued to consolidate and expand its activities in the year by expanding production capacities in the existing lines of business (Plastics) and in FMCG segment (Detergent Powder). Turnover of the company increased by 20.57%, from Rs 3632.400 millions to Rs 4379.800 millions .Profitability of the company has however been affected due to steep rise in financial costs, selling and distribution expenses and higher charge of depreciation. Apart from distribution expenses, the unprecedented rise in the petroleum product’s prices have affected cost of Raw materials like Plastics granules, Paper and Duplex Boards, Fuels and Chemicals which also has impacted the margins.

MANAGEMENT PERCEPTION FOR FUTURE AND EXPANSION PLANS.

The company continues to maintain very positive outlook for the growth of Packaging, Plastics and FMCG Industry in India. Rising income levels, higher disposable income with growing young generation of Indians bode very well for all the three segments of business in which the company is presently operating.

FORM : 8

Corporate identity number of the company	U74950PB1996PLC018439
Name of the company	BBF INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	VILL - Bhamian Kalan, Tajpur Road, Ludhiana, Punjab, 141008, INDIA
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge)
Particular of charge holder	STATE BANK OF INDIA, S.C.B., Miller Ganj, Pahwa Hospital Complex, MID Corporate Sales Hub, Ludhiana – 141003, Punjab, India
Nature of instrument creating charge	Supplementary Hyp Agreement Of Goods And Assets For Increase In Overall Limit
Date of instrument Creating the charge	31/03/2011
Amount secured by the charge	Rs. 585.800 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest CC 2.75% above base rate TL/WCTL/FITL 1.75% above base rate Terms of repayment CC On Demand TL/WCTL/FITL As Per Repayment Margin CC 10% BD 20% Extent and operation of the charge 100% Other First Charge on Pari Passu Basis With The Other Lenders on The Entire Assets of The Company.
Date of instrument modifying the charge	16/02/2009
Particulars of the present modification	The original charge of Rs.156.800 millions modified on 12.05.06, 17.08.07, 1602.2009 is now modified and the total of Fund Based(FB) and Non Fund Based(NFB) credit facilities comes out to Rs.585.800 millions as follows- CC(H) - Rs 228.300 millions, CC (BD) Rs(100.000 millions), T/L Rs 67.300 millions, WCTL Rs 188.100, FITL Rs 48.800, LC/FLC Rs 33.300 millions and BG Rs 20.000 millions Total credit limit is Rs 585.800 millions.

FIXED ASSETS:

· Freehold Land

· Leasehold Land

· Building

· Furniture and Fixtures

· Office Equipment

· Plant and Machinery

· 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. 44.28
UK Pound	1	Rs. 72.36
Euro	1	Rs. 64.16

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	NO
--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.