MIRA INFORM REPORT

Report Date :

22.03.2011

IDENTIFICATION DETAILS

Name :	HARI PACK EXTRUSIONS (VIDARBHA) PRIVATE LIMITED

Registered Office :	K-61, MIDC Industrial Area, Hingna, Nagpur – 400016, Maharashtra

Country :	India

Financials (as on) :	31.03.2009

Date of Incorporation :	21.04.2004

Com. Reg. No.:	11-145822

CIN No.: [Company Identification No.]	U24294MH2004PTC145822

TAN No.: [Tax Deduction & Collection Account No.]	NGPH02531E

PAN No.: [Permanent Account No.]	AABCH4255Q

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer and Exporter of Quality Plastic Bags and Heat Sealable Box Strapping.

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 87000

Status :	Satisfactory

Payment Behaviour :	Slow But Correct

Litigation :	Clear

Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. Payments are reported as slow but correct. 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

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY (GENERAL DETAILS)

Name :	Mr. Vikas
Designation :	Accounts Department
Date :	21.03.2011

LOCATIONS

Registered Office/ Factory :	K-61, MIDC Industrial Area, Hingna, Nagpur – 400016, Maharashtra, India
Tel. No.:	91-7104-235440/ 441
Fax No.:	91-7104-237945
E-Mail :	info@haripack.com hpack@vsnl.com haripack@bom3.vanl.net.in abhay9@indiatimes.com sagdeo1@gmail.com
Website :	http://www.haripack.com
Area :	2100 sq. mt.
Location :	Owned by Director

Head Office :	30-A, Corporation Colony, Gandhi Nagar, Nagpur – 440 010, Maharashtra, India
Tel. No.:	91-712-2226837/ 2226949
Fax No.:	91-712-2235501
Mobile No.:	info@haripack.com

DIRECTORS

As on 30.09.2009

Name :	Mr. Dilip B. Murarka
Designation :	Director
Address :	30 A, Pratik Corporation Colony, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	06.01.1962
Qualification :	Post Graduate
Date of Appointment:	21.04.2004

Name :	Mr. Ronald Francis
Designation :	Director
Address :	D-54/55 Vasant Vihar, Comple Khadgaon Road, Wadi Nagpur – 440023, Maharashtra, India
Date of Birth/Age :	26.09.1974
Qualification :	Post Graduate
Date of Appointment:	28.01.2005

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2009

Names of Shareholders (Equity Shareholders)		No. of Shares

Dilip B. Murarka		767370
Ronald Francis		10
Sandhya Murarka		38000
Dilip Murarka (HUF)		144620

Total		950000

Names of Shareholders (Preference Share Holders )
Daga Ulthandas		1
Apex Multi Trade Private Limited		1
Agarwal Srikant Rajani		1
Jawandhiya Surekha		1
Jham D Chimanlal		1
Agrawal O Satyaanarayan		1
Sindhania Naresh		1
Pacheriwala Ashok Kumar		1
Rawal Mohinder Singh		1
Dilip Murarka (HUF)		48988
Darya Dhan		1
Lala Jas Ram Sons		1
Gupta Janahar		1
Total		49000

As on 30.09.2009

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Trader of Packaging Material and Plastic Polymers.

Products :	Carry Bags Plastic Packing Materials Plastic Box Strapping Packing Bags

Exports :
Products :	HDP Bags
Countries :	USA UK

Imports :
Products :	Raw Material
Countries :	Abudhabi

Terms :
Selling :	L/C, Cash and Credit

Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

150 (Approximately

Bankers :

Bank of Baroda

Dharampet, Nagpur, Maharashtra, India

State Bank of Patiala

2, Central Avenua Branch, Nagpur – 440001, Maharashtra, India

Facilities :

Secured Loans	31.03.2009 Rs. In Millions	31.03.2008 Rs. In Millions
1. Rupee term loan from State Bank of Patiala, Nagpur -Secured by Equitable mortgage of Leasehold land and factory buildings of the company situated at K-61. MIDC Area, Hingna, Road, Nagpur, hypothecation of machinery and moveable and personal guarantee of managing director of the company	16.536	19.805

2. Packing Credit Limit from State Bank of Patiala, Nagpur -Secured by hypothecation of stocks and book debts of the company and personal guarantee of managing director of the company and extension of charge over fixed assets of the company	39.827	40.351

3. Rupee term loan from State Bank of Patiala, Napur secured by equitable mortgage of Leasehold land and factory buildings of the company situated at D-l, D-1A and D-4/2, MIDC Area, Hingna Road, Nagpur, hypothecation of machinery, and Moveable and personal guarantee of a director of the company. [ All the Loans from State Bank of Patiala are further secured by a charge on the fixed and current assets of the company at K-61 and D-1, D-1A and 0-4/2 MIOC Area, Hingna Road, Nagpur]	77.686	93.258

Balance of Current Accounts with Scheduled Banks By Reconciliation	0.994	1.715
Total	135.043	155.129


Banking Relations :

Auditors :
Name :	V Y Sagadeo and Company Chartered Accountants
Address :	Prabha Niwas East Side, Ground Floor, Wardha Road, Rahate Colony, Nagpur-440 022, Maharasahtra, India

CAPITAL STRUCTURE

As on 30.09.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
950000	Equity Shares	Rs.10/- each	Rs.9.500 Millions
50000	Preference Shares	Rs.10/- each	Rs.0.500 Million
	Total		Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
950000	Equity Shares	Rs.10/- each	Rs.9.500 Millions
49000	Preference Shares	Rs.10/- each	Rs.0.490 Million
	Total		Rs.9.990 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		9.990	9.990	9.990
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		11.862	10.085	7.850
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		21.852	20.075	17.840
LOAN FUNDS
1] Secured Loans		135.043	155.129	33.972
2] Unsecured Loans		70.497	74.878	27.253
TOTAL BORROWING		205.540	230.007	61.225
DEFERRED TAX LIABILITIES		0.221	0.000	0.000

TOTAL		227.613	250.082	79.065

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		151.583	171.403	20.649
Capital work-in-progress		0.000	0.000	25.602

INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.089	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.471	15.139	15.058
	Sundry Debtors	67.501	33.195	30.860
	Cash & Bank Balances	7.263	35.562	1.680
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	11.955	1.287	0.859
Total Current Assets		114.190	85.183	48.457
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	36.368	6.125	14.067
	Other Current Liabilities	1.509	0.471	0.539
	Provisions	0.348	0.175	1.129
Total Current Liabilities		38.225	6.771	15.735
Net Current Assets		75.965	78.412	32.722

MISCELLANEOUS EXPENSES		0.065	0.177	0.092

TOTAL		227.613	250.082	79.065

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2009	31.03.2008	31.03.2007
	SALES
		Income	131.657	76.601	91.521
		Other Income	0.146	0.013
		TOTAL (A)	131.803	76.614	91.521

Less	EXPENSES
		Cost of Trading Goods Sold	41.204	0.000
		Raw Materials and packing Material Consumed	68.309	60.636
		Manufacturing and Other Expenses	4.920	5.025
		Payments to and provision for employees	0.810	0.864	81.420
		Administrative and Management Expenses	0.507	0.413
		Selling and Distribution Expenses	4.965	3.033
		Preliminary Expenses written off	0.023	0.022
		Increase/ (Decrease) in Inventories	(1.685)	(3.171)
		TOTAL (B)	119.053	66.822	81.420

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		12.750	9.792	10.101

Less	FINANCIAL EXPENSES (D)		7.654	6.592	2.319

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.096	3.200	7.782

Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.778	2.388	1.343

	PROFIT BEFORE TAX (E-F) (G)		2.318	0.812	6.439

Less	TAX (H)		0.541	0.213	0.000

	PROFIT AFTER TAX (G-H) (I)		1.777	0.599	6.439

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.199	0.599	0.537

Less	APPROPRIATIONS
		Transfer to General Reserve	1.800	1.000	5.500
	BALANCE CARRIED TO THE B/S		0.176	0.199	0.599

	EARNINGS IN FOREIGN CURRENCY		82.042	72.140	89.779

	IMPORTS		148.082	48.396	71.236

	Earnings Per Share (Rs.)		1.78	0.60	NA

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	1.35	0.78	7.04

Net Profit Margin (PBT/Sales)	(%)	1.76	1.05	7.04

Return on Total Assets (PBT/Total Assets}	(%)	0.87	1.03	9.32

Return on Investment (ROI) (PBT/Networth)		0.11	0.04	0.36

Debt Equity Ratio (Total Liability/Networth)		11.16	0.33	4.31

Current Ratio (Current Asset/Current Liability)		2.98	12.58	3.08

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

31.03.2007

(Rs. in millions)

Sundry Creditors for Goods and other than SSI Units

36.213

5.831

14.067

Sundry creditors fro goods to SSI Units

0.155

0.294

0.000

Trade Reference:

· Shivam Foods

Form 8:

Name of the company	HARI PACK EXTRUSIONS (VIDARBHA) PRIVATE LIMITED
Presented By	Dilip Murarka, Director
1) Date and description of instrument creating the change	1. Composite Hypothecation Agreement Dt: 04.01.2006 and 2. No instrument was executed (Memorandum of Entry Dt: 05.01.2008 for deposit of titles deeds by bank). To secure the Packing Credit cum FBP. Letters of Credit and Term Loan granted to the Company.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 26.400 Millions
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	1. Hypothecation of all tangible and moveable property such as products stock in trade and goods whether finished or raw material or in the process of manufacturer thereon belonging to the borrowers which now or hereafter from time to time during the security shall be brought in-stored in the premises, ware house or godowns of the said borrowers at -61, MIDC Industrial Area, Hingna, Nagpur – 400016, Maharashtra or anywhere else including any such goods in the course of transit or delivery shall stand hypothecation to the Bank by way of first charge as security and 2. Equitable mortgage of Land Building and Plant & Machinery of the company situated at -61, MIDC Industrial Area, Hingna, Nagpur – 400016, Maharashtra.
4) Gist of the terms and conditions and extent and operation of the charge.	1. Term Loan Rs. 6.700 Millions Interest 12.75%p.a Margin 30% Repayable in 20 Quarterly installments of Rs. 0.335 Millions each after first disbursement, interest to be paid on monthly basis: 2. Packing Credit Cum FBP Rs. 1.000 Millions Interest 6.75%p.a Margin 10% for packing credit 15% for FBP Period : 12 Months subject to annual review 3. Letter of Credit Rs. 9.700 Millions Margin 15% Cash Deposite Commission as per FEDAI Rate/Bank’s guidelines from time to time
5) Name and Address and description of the person entitled to the charge.	Bank of Baroda Dharampati Branch, Nagpur – 440010, Maharashtra, India.

This form is for	Modification of charge
Charge identification number of the modified	10087299
Corporate identity number of the company	U24294MH2004PTC145822
Name of the company	HARI PACK EXTRUSIONS (VIDARBHA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	K-61, MIDC Industrial Area, Hingna, Nagpur – 400016, Maharashtra, India
Type of charge	Immovable Property Book Debts Movable Property Floating Charge
Particular of charge holder	State Bank of Patiyala 2, Central Avenua Branch, Nagpur – 440001, Maharashtra, India B5334@sbp.co.in
Nature of description of the instrument creating or modifying the charge	Agreement in from SBP 1611 i.e. Agreement of Loan for overall limits for Term Loan Agreement in from SBP 1612 i.e. Agreement for Hypothecation goods and assets for Term Loan Equitable Mortgage of Immovable Property of the company – No instrument
Date of instrument Creating the charge	31.01.2009
Amount secured by the charge	Rs. 140.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 0.25% below BPLR presently 12.75% pa monthly subject to change from time to time. Terms of Repayment 25 Quarterly Installments. First 21 Installments will be Rs. 5.375 Millions each starting from February 2008, Last 4 Installments will be of Rs. 67.812 each. Last installment will be due in march 2014 Margin 34.36% Extent and Operation of the charge State Bank of India has first and floating charge on all the movable and immovable properties of the company. Others Not Available
Short particulars of the property charged	Equitable mortgage of factory land located at Plot No. D-1/A & D-1, and D – 4 /2 in the MIDC Industrial Area, Hinhna Road, Nagpur, Maharashtra. The total plot area of the factory is 51369 Sq. Ft (12.69 Acres) and total built up area is 20746.12 Sq. Ft. Hypothecation of plant & machinery to be created under the project.
Date of latest modification prior to the present modification	31.01.2009

Fixed Assets:

Leasehold Land
Factory Building
Plant and Machinery
Electrical Installation
Furniture and Fittings
Office Equipments
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 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.45.05
UK Pound	1	Rs.73.05
Euro	1	Rs.63.81

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	NO
--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.