MIRA INFORM REPORT

Report Date :

11.11.2011

IDENTIFICATION DETAILS

Name :	CHANNEL PLASTICS PRIVATE LIMITED

Registered Office :	14/1C, Jainuddin Mistry Lane, Kolkata – 700027, West Bengal

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	11.04.1989

Com. Reg. No.:	21-046675

Capital Investment / Paid-up Capital :	Rs. 3.248 Millions

CIN No.: [Company Identification No.]	U45201WB1989PTC046675

TAN No.: [Tax Deduction & Collection Account No.]	CALC03393F

PAN No.: [Permanent Account No.]	AADCS8254J

Legal Form :	Private Limited Liability Company

Line of Business :	The company engaged into manufacturing plastics containers of various sizes.

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 122000

Status :	Moderate

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small business dealings at usual 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

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

LOCATIONS

Registered Office :	14/1C, Jainuddin Mistry Lane, Kolkata – 700027, West Bengal, India
Tel. No.:	91-33-24795938
Fax No.:	Not Available
E-Mail :	sanjay@channelplastics.in rakesh@channelplastics.in

Admin Office :	4, Ho-Chi-Minh Sarani, Suite 4B, Kolkata – 700071, West Bengal, India
Tel. No.:	91-33-22827405/08
Fax No.:	91-33-22824019
E-Mail :	channelp@vsnl.net

Factory :	Village – Karasinpur, P.O: Katigram, District : Birbhum – 731216, West Bengal, India
Tel. No.:	91-3461-262746
E-Mail :	factory@channelplastics.in

DIRECTORS

As on 30.09.2011

Name :

Mr. Rakesh Sethia

Designation :

Whole Time Director

Address :

108, Old China Bazar Street, Flat – 4C, Kolkata – 700001, West Bengal, India

Date of Birth/Age :

14.09.1971

Date of Appointment :

28.12.2006

DIN No.:

00409033

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	U24239WB2000PTC092507	Nezone Herbals Private Limited	Director	11-10-00	11-10-00	-	Active	NO
2	U63022WB2003PTC096241	Nanesh Cold Storage Private Limited	Director	22-05-03	22-05-03	-	Active	NO
3	U25209WB2003PLC097273	Mega Flex Plastics Limited	Whole-time director	01-12-10	18-11-03	-	Active	NO
4	U25200WB2004PLC098359	Samta Polymers Limited	Director	20-04-04	20-04-04	-	Active	NO
5	U45201WB1989PTC046675	Channel Plastics Private Limited	Director	28-12-06	28-12-06	-	Active	NO
6	U25200WB2009PTC132890	Gateway Polymer Private Limited	Director	19-02-09	19-02-09	05-11-09	Active	NO
7	U85190WB2010PTC153942	SLX Healthcare Private Limited	Director	08-10-10	08-10-10	-	Active	NO
8	U24134WB1996PTC077221	Samta Plastics Private Limited	Director	11-03-11	11-03-11	-	Active	NO
9	U52100WB2009PTC132575	Pragatisheel Commercial Private Limited	Director	01-04-11	01-04-11	-	Active	NO
10	U52190WB2011PTC166897	Red Oranges Retail Private Limited	Director	27-08-11	27-08-11	-	Active	NO

Name :

Mr. Hukum Chand Bothra

Designation :

Whole Time Director

Address :

108, Old China Bazar Street, Flat – 4C, Kolkata – 700001, West Bengal, India

Date of Birth/Age :

08.07.1967

Date of Appointment :

03.07.2000

DIN No.:

00550653

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	U21014WB1990PTC049207	Samta Packaging Private Limited	Director	01-01-93	01-01-93	-	Active	NO
2	U45201WB1989PTC046675	Channel Plastics Private Limited	Director	03-07-00	03-07-00	-	Active	NO
3	U63022WB2003PTC096241	Nanesh Cold Storage Private Limited	Director	22-05-03	22-05-03	-	Active	NO
4	U25209WB2003PLC097273	Mega Flex Plastics Limited	Whole-time director	01-12-10	01-06-04	-	Active	NO
5	U52100WB2010PTC147416	Highland Barter Private Limited	Director	01-08-11	01-08-11	-	Active	NO
6	U52100WB2010PTC147415	Deserve Vintrade Private Limited	Director	01-08-11	01-08-11	-	Active	NO
7	U45400WB2009PTC132159	Oxide Infrastructure Private Limited	Director	01-08-11	01-08-11	-	Active	NO

Name :

Mr. Jaichandlal Bhanwarlal Sukhani

Designation :

Director

Address :

Near Daga Pirol, Bikaner – 334005, Rajasthan, India

Date of Birth/Age :

15.01.1948

Date of Appointment :

01.11.2010

DIN No.:

01053061

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	U25200WB2004PLC098359	Samta Polymers Limited	Director	26-12-06	26-12-06	-	Active	NO
2	U45201WB1989PTC046675	Channel Plastics Private Limited	Director	01-11-10	01-11-10	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders		No. of Shares
Anupchand Sethia		100
Usha Anupchand Sethia		100
Shashikala Abirchand Sethia		100
Dhanpat Latemoolchand Manot		6900
Shakuntala Pratap Dudheria		2400
Rajeev Abirchand Sethia		500
Girish Late Monilal Doshi		3500
Hanuman Late Bhanwar Sethia		1500
Veer late Champalal Daga		1000
Sushila Veerchand Daga		500
Tara Late Harakchand Sipani		500
Sajan Satya Narayan Murarka		2000
Sarala Kamalchand Bachhawat		500
Rakesh Anupchand Sethia		16100
Rajendra Late Amarchand Surana		100
Pankaj Pratapsingh Dudheria		3500
Hukum Khemchand Bothra		100
Samta Polymers Limited , India		60000
Sethia Plastics India Private Limited , India		5000
Anupchand Sethia and Others , India		25000
Nilima Anupchand Sethia		8000
Ratandevi Sethia		180
Samta Plastics Private Limited, India		115700
Shobhna Girishchandra Doshi		4500
Prabha Suhadchandra Kakar		1500
Nezone Herbals Private Limited, India		65500
TOTAL		324780

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	57.33
Directors or relatives of Directors	24.19
Other top fifty shareholders	18.47
Total	100.00

BUSINESS DETAILS

Line of Business :

The company engaged into manufacturing plastics containers of various sizes.

Products :

Product Description	Item Code No.
Plastic Container	313.20

GENERAL INFORMATION

Suppliers :

Winner Screen Machines Private Limited
N.E Paint Udyog
Oxford Paints and Chemicals
Kangaroo Paints India
Hindustan Industries
Shah Paint Udyog
Dipankar Pyne

Customers :

Astral Paints Private Limited
Alpha Pigments
Balmer Lawrie and Company Limited
C.M Motors
Coastal Paints Limited
N.K Trading
Shyam Sales
S S Paints and Chemicals
U.K Paints India Private Limited
Spectra Paint Industries

No. of Employees :

Not Available

Bankers :

State Bank of India, 39, Shakespeare Sarani, 2^nd Floor, Premlata Building, Kolkata – 700017, West Bengal, India
HDFC Bank
Citi Bank
ICICI Bank
ABN Amro Bank
Kotak Mahindra Bank Limited
Standard Charted Bank Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
State Bank of India (Cash Credit Account) Hypothecation against stock/Book debts)	5.836	0.761
HDFC Bank – (Loan against hypothecation of car)	0.311	0.000
Citi Bank – (Loan against hypothecation of truck)	0.000	0.135
ICICI Bank – (Loan against mortgage of flat)	5.400	3.236
ICICI Bank – (Loan against hypothecation of truck)	0.368	0.529
ICICI Bank Loan – lll (Loan against hypothecation of truck)	0.505	0.662
Total	12.420	5.323
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
ABN Amro Bank	0.575	1.271
Cholamandalam DBS Finance Limited	0.000	0.324
HDFC Bank Limited	0.000	0.429
Indiabulls Financial Services Limited	0.000	1.320
Kotak Mahindra Bank Limited	0.000	0.192
Standard Charted Bank Limited	0.000	1.321
Prabha Kakar	0.000	0.100
Brand Equity Private Limited	2.150	0.000
Nilima Sethia	0.673	0.000
Rakesh Sethia	0.712	0.000
Rakesh Sethia and Sons (HUF)	0.020	0.000
Samta Plastics Private Limited	0.618	0.000
Usha Sethia	0.871	0.000
Total	5.619	4.957

Banking Relations :	--

Financial Institution :	Cholamandalam DBS Finance Limited Indiabulls Financial Services Limited

Auditors :
Name :	R. Bhutra and Company Chartered Accountants
Address :	76, B.B.D Road, Hindmotor, Kolkata, West Bengal – 712233, India
Tel. No.:	91-33-22748619
E-Mail :	rbc_kol@yahoo.co.in
PAN.:	AAGFR1345F

CAPITAL STRUCTURE

After 30.09.2011

Authorised Capital of Rs. 20.000 Millions

Issued, Subscribed and Paid up Capital of Rs. 3.947 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
700000	Equity Shares	Rs.10/- each	Rs. 7.000 Millions
130000	1% Non Cumulative Convertible Preference Shares	Rs.100/- each	Rs. 13.000 Millions
	TOTAL		Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
324780	Equity Shares	Rs.10/- each	Rs. 3.248 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		3.248	3.248	3.248
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.276	27.060	25.792
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		30.524	30.308	29.040
LOAN FUNDS
1] Secured Loans		12.420	5.323	1.633
2] Unsecured Loans		5.619	4.957	9.567
TOTAL BORROWING		18.039	10.280	11.200
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		48.563	40.588	40.240

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		6.786	7.358	6.583
Capital work-in-progress		2.037	0.198	0.000

INVESTMENT		14.512	14.032	14.032
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.376	8.261	3.937
	Sundry Debtors	3.564	4.657	5.574
	Cash & Bank Balances	1.547	1.056	7.781
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.564	4.657	5.574
Total Current Assets		27.413	22.465	22.356
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.453	1.829	1.457
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	1.732	1.636	1.274
Total Current Liabilities		2.185	3.465	2.731
Net Current Assets		25.228	19.000	19.625

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		48.563	40.588	40.240

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	78.561	NA	NA
		Other Income		NA	NA
		TOTAL	78.561	NA	NA

Less	EXPENSES
		Office Expenses	76.803	NA	NA
		Administrative Expenses		NA	NA
		Advertising Expenses		NA	NA
		TOTAL	76.803	NA	NA

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		1.758	2.874	2.768

Less/ Add	DEPRECIATION/ AMORTISATION		1.446	1.246	1.166

	PROFIT BEFORE TAX		0.312	1.629	1.602

Less	TAX		0.096	0.361	0.154

	PROFIT AFTER TAX		0.216	1.268	1.448

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6.164	4.896	3.449

	BALANCE CARRIED TO THE B/S		6.380	6.164	4.896

	Earnings Per Share (Rs.)		0.66	3.90	4.46

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.27	NA	NA

Return on Total Assets (PBT/Total Assets}	(%)	0.91	5.46	5.54

Return on Investment (ROI) (PBT/Networth)		0.01	0.05	0.06

Debt Equity Ratio (Total Liability/Networth)		0.66	0.45	0.48

Current Ratio (Current Asset/Current Liability)		12.55	6.48	8.19

LOCAL AGENCY FURTHER INFORMATION

FORM 8:

Corporate identity number of the company	U45201WB1989PTC046675
Name of the company	CHANNEL PLASTICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	14/1C, Jainuddin Mistry Lane, Kolkata – 700027, West Bengal, India Email : sanjay@channelplastics.in
This form is for	Modification of Charge
Charge identification (ID) number of the charge to be modified	10170791
Type of charge	Immovable Property
Particular of charge holder	State Bank of India, 39, Shakespeare Sarani, 2^nd Floor, Premlata Building, Kolkata – 700017, West Bengal, India Email : sbi.04833@sbi.co.in
Nature of instrument creating charge	Agreement of Loan cum hypothecation (with Mega Flax Plastics Limited) Memorandum for recording creation of mortgage by deposit of title deeds
Date of instrument Creating the charge	29.04.2011
Amount secured by the charge	Rs. 100.391 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest : Cash Credit Rs. 60.000 millions, Rate of Interest at present 14.75% Term Loan Rs. 37.191 millions, Rate of Interest at present 15.50% Bank Guarantee Rs. 3.200 millions (all standing in the Mega Flax Plastics Limited) Terms of Repayment : Cash Credit on Demand Term Loan 20 Quarter Installment of Rs. 3.400 Millions (By Mega Flax Plastics Limited) Margin : Raw Material, Stock in Process and Finished goods 25% Book Debts/ Receivables 30% Extent and Operation of the charge : Secured by way of hypothecation on book debts, stock and mortgage first exclusive charge on land and building and erections thereon (both present and future) Situated and being premises at mouza, Jaladhulaguri, J.L No.02, Dag No.952, P.S. Sankrail, District – Howrah, West Bengal Others : The above loan of Rs. 100.391 millions sanctioned to Mega Flax Plastics Limited by State Bank of India. The company only providing its property as security against the loan of Mega Flax Plastics Limited
Short particulars of the property or asset(s) charged (including complete address and location of the property)	All the piece and parcel of area in common facility building measuring 599Sq.ft bearing office Space bearing no F-5, in mouza jaladhulaguri, J.L No. 02.
Date of instrument modifying the charge	24.07.2009
Particulars of the present modification	Present Limit Modified from Rs. 101.103 Millions to Rs. 100.391 Millions.

FIXED ASSETS

Land
Office Building
Factory Building
Moulds
Furniture and Fixture
Tools
Electric Installation
Plant and Machinery
Injection Mouldings Machine
Trucks
Truck Running Hire
Office Machinery
Computer
Motor Car

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.49.78
UK Pound	1	Rs.80.10
Euro	1	Rs.68.82

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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.

MIRA INFORM REPORT

11.376

3.564

1.547

0.000

3.564

27.413

0.453

0.000

1.732

2.185

25.228

0.27

0.91

0.01

0.66

12.55

Unit