MIRA INFORM REPORT

Report Date :

21.11.2011

IDENTIFICATION DETAILS

Name :	STARFLEX SEALING INDIA PRIVATE LIMITED
Registered Office :	124, Nagdevi Street, Mumbai 400003, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	07.04.1984
Com. Reg. No.:	032609
Capital Investment / Paid-up Capital :	Rs.20.750 millions
CIN No.: [Company Identification No.]	U99999MH1984PTC032609
TAN No.: [Tax Deduction & Collection Account No.]	MUMM19307B
PAN No.: [Permanent Account No.]	AAACN1679B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacture of Gaskets
No. of Employees :	100 Approximately

RATING & COMMENTS

MIRA’s Rating :

B (36)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 186132
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Financial position of the company is improving. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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.

INFORMATION PARTED BY

Name :	Mr. Shail S Shah
Designation :	Director
Contact No.:	91-9920189897
Date :	21.11.2011

LOCATIONS

Registered Office :	124, Nagdevi Street, Mumbai 400003, Maharashtra, India
Mobile No.:	91-9920189897 (Mr. Shail S Shah)
E-Mail :	starflex@starflex.com accounts@starflex.net info@starflex.net
Website :	www.starflex.net
Head Office :	15/B, Vinod Apartment, Krantiveer Vasant Rao Naik X Lane, Gowalia Tank, Mumbai 400036, Maharashtra, India
Tel. No.:	91-22-23890904 / 05
Fax No.:	91-22-23890907
Factory :	Plot L 80/81, Verna Industrial Estate, Verna, Salceta 403722, Goa, India
Tel. No.:	91-832-2783148 / 49 / 50
Fax No.:	91-832-2783151

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Shailesh Mohanlal Shah
Designation :	Director
Date of Birth/Age :	28.06.1949
Date of Appointment :	07.04.1984
DIN No.:	01085518

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	U26943MH1977PTC019534	N Mohanlal And Company Private Limited	Director	04/03/1977	04/03/1977	-	Active	NO
2	U99999MH1984PTC032609	Starflex Sealing India Private Limited	Director	07/04/1984	07/04/1984	-	Active	NO
3	U29191MH1997PTC107580	Starflex Gaskets Private Limited	Director	30/08/2001	28/04/1997	-	Active	NO
4	U85110MH2000PTC125392	N M Healthcare Private Limited	Director	28/03/2000	28/03/2000	-	Active	NO
5	U29100MH2008PTC183952	Starflex Seals Private Limited	Director	25/06/2008	25/06/2008	-	Active	NO

Name :	Mr. Shail Shailesh Shah
Designation :	Director
Date of Birth/Age :	31.08.1975
Date of Appointment :	01.12.2000
DIN No.:	01005148

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	U99999MH1984PTC032609	Starflex Sealing India Private Limited	Director	01/12/2000	01/12/2000	-	Active	NO
2	U29191MH1997PTC107580	Starflex Gaskets Private Limited	Director	30/08/2001	30/08/2001	-	Active	NO
3	U29100MH2008PTC183952	Starflex Seals Private Limited	Director	25/06/2008	25/06/2008	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Shailesh Mohanlal Shah	1850000
Nilesh Mohanlal Shah	25000
Flexitallic Investment Inc. , USA	60000
Shahilesh M Shah Jointly With Nilesh M Shah	140000
Total	2075000

AS ON 30.09.2011

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]		2.89
Directors or relatives of directors		97.11
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Gaskets.

Products :

· Spiral Wound Gaskets

· Sheet based and cut gaskets

· Tooth Profile Gaskets

· Jacketed Gaskets

· Envelope Gaskets

· Gland Packings

ITC Code	Product Description
680590	Jointing Sheets
848400	Spiral Wound Gasket
680590	Gland Packing

PRODUCTION STATUS

AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Jointing Sheets-Asbestos and Non Asbestos	Kgs.	42000000	1800	1472
Gland Packings-Asbestos and Non Asbestos	Kgs.	1800000	250	--
Yarn Asbestos and Non Asbestos	Kgs.	2400000	--	--
Woven fabric Asbestos and Non Asbestos	Kgs.	1800000	--	--
Soft Cut Gaskets	Pieces	480000	--	457923
Heat Exchange Gaskets	Pieces	120000	--	--
Spiral Wound Gaskets	Pieces	480000	480000	596304
Ring Joints	Pieces	240000	--	--
Brake lining	Ton	12000	--	--
Teflon and Fluorseal Spools	Pieces	1200000	--	--
Sigma	Ton	1200	--	--
Steel Scrap	Kg	--	--	--

Note: Installed capacity is as certified by Management and not verified by auditors, it being a technical matter.

GENERAL INFORMATION

Suppliers :

Not Available

Customers :

· Gas Authority of India

· Bhabha Atomic Research Centre

· Birla Cellulosic

· British Gas

· GMM Pfaudler

· Godrej

· Hindustan Lever

· Hindustan Petroleum

· Indian farmers fertiliser Corporation

· Indian Petrochemical Corporation Limited

· Indira Gandhi Centre for Atomic Research

· Kribcho

· L and T

· Mitsubishi PTA

· National Thermal Power Corporation

· Nuclear Power Corporation of India

· Oil and Natural Gas Corporation

· Reliance Industries

· Rohm and Haas

· Tata Chemicals

No. of Employees :

100 Approximately

Bankers :

· The Shamrao Vithal Co Operative Bank, A/2, 3,4 and 5, Ganeshprasad, Near Bharucha Marg, Mumbai 400007, Maharashtra, India

· Economic Development Corporation of Goa Daman Deu Limited, EDC House, Dr. A B Road, Panji 403001, Goa, India

Facilities :

Rs. In Millions

SECURED LOAN	31.03.2011	31.03.2010
From SICOM Limited (Secured Against First Charge on Lease Hold Property bearing Plot No. L-80/81 at Verna Industrial Estate).	8.100	12.300
From N. Mohanlal and Company Private Limited	25.979	25.979
From SIDBI-DPG (Secured Against Second Charge on Lease Hold Property bearing Plot No. L-80/81 at Verna Industrial Estate).	2.426	3.422
From HDFC Car Loan (Secured against Hypothecation of Honda City ZX-IMT)	0.808	0.081
TOTAL	37.313	41.782
UNSECURED LOAN
Form Director	1.802	1.628
Intercorporate Deposits	0.972	0.971
Others	11.547	12.413
TOTAL	14.321	15.012

Banking Relations :	--
Auditors :
Name :	Karnavat and Company Chartered Accountant
Address :	2/A, Kitab Mahal, 192 Dr. D N road, Mumbai 400001, Maharashtra, India
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs. 10 each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2075000	Equity Shares	Rs. 10 each	Rs.20.750 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		20.750	20.750	20.750
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		25.783	21.637	18.689
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		46.533	42.387	39.439
LOAN FUNDS
1] Secured Loans		37.313	41.782	47.203
2] Unsecured Loans		14.321	15.012	17.223
TOTAL BORROWING		51.634	56.794	64.426
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		98.167	99.181	103.865
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		52.794	58.831	66.150
Capital work-in-progress		9.078	9.075	9.075
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	17.421	17.780	14.862
	Sundry Debtors	28.537	23.389	25.012
	Cash & Bank Balances	0.612	1.485	1.544
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.643	2.531	3.267
Total Current Assets		49.213	45.185	44.685
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5.388	7.015	9.941
	Other Current Liabilities	6.487	6.061	5.521
	Provisions	1.043	0.834	0.583
Total Current Liabilities		12.918	13.910	16.045
Net Current Assets		36.295	31.275	28.640
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		98.167	99.181	103.865

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	67.614	47.304	49.081
		Job Work Charges Received		0.578	0.000
		Other Income		0.709	9.638
		TOTAL (A)	67.614	48.591	58.719
Less	EXPENSES
		Cost of Materials		17.920	24.296
		Manufacturing Expenses		7.551	8.680
		Employees Remuneration		6.040	7.465
		Increase/(Decrease) in Finished Goods	62.509	(4.628)	(3.342)
		Excise Duty on Finished Good Stock Difference		0.322	(0.312)
		Administrative Expenses		6.591	5.898
		TOTAL (B)	62.509	33.796	42.685
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	14.795	16.034
Less	FINANCIAL EXPENSES (D)		NA	2.958	4.790
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		NA	11.837	11.244
Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	8.244	8.824
Less	Amortization of Leasehold Land		NA	0.046	0.046
	PROFIT BEFORE TAX (E-F) (G)		5.205	3.547	2.374
Less	TAX (H)		NA	0.600	0.372
	PROFIT AFTER TAX (G-H) (I)		4.145	2.947	2.002
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	0.000	8.546
	IMPORTS
		Raw Materials	1.768	0.000	1.960
		Capital Goods	0.000	0.000	3.280
	TOTAL IMPORTS		1.768	0.000	5.24
	Earnings Per Share (Rs.)		2.00	1.42	2.04

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	6.06	3.40
Net Profit Margin (PBT/Sales)	(%)	NA	7.49	4.83
Return on Total Assets (PBT/Total Assets}	(%)	NA	3.41	2.14
Return on Investment (ROI) (PBT/Networth)		NA	0.08	0.06
Debt Equity Ratio (Total Liability/Networth)		1.38	1.66	2.04
Current Ratio (Current Asset/Current Liability)		3.80	3.24	2.78

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

Rs. In Millions

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	5.388	7.015	9.941

FIXED ASSETS:

· Leasehold Land

· Building

· Plant and Machinery

· Electrical Installations

· Office Equipments

· Vehicles

· Computers

FORM 8

Corporate identity number of the company	U99999MH1984PTC032609
Name of the company	STARFLEX SEALING INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	124, Nagdevi Street, Mumbai 400003, Maharashtra, India
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge)
Particular of charge holder	The Shamrao Vithal Co Operative Bank, A/2, 3,4 and 5, Ganeshprasad, Near Bharucha Marg, Mumbai 400007, Maharashtra, India Email: fernandespl@svcbank.com
Nature of instrument creating charge	Composite Hypothecation Agreement
Date of instrument Creating the charge	05.10.2011
Amount secured by the charge	Rs. 10.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest @PLR -3.50% p.a.(i.e. 14% p.a.) Terms of repayment The facilities to be reviewed/renewed in September 2012. Margin 25% Extent and operation of the charge The charge shall operate to secure due repayment of the credit facilities aggregating Rs.10.000 millions together with interest, costs, charges and expenses thereon, granted by the Bank to the Company. Other Cash Credit - Rs.10.000 millions
Short particulars of the property charged (Including location of the property)	Main Security -Hypothecation of stock and book debts upto 90 days. Collateral security - 2nd charge on properties mortgaged to SICOM Ltd. Present and future fixed assets at Plot no.1-80/81, Verna Industrial Estate, Verna, Salcet , Goa. Hypothecation of machinery, spares, vehicles and other moveable assets present and future at Plot no.1-80/81, Verna Industrial Estate, Verna, Salcet , Goa.

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	Yes
5) Type of Business	Yes
6) Line of Business	Yes
7) Promoter's background	--
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	--
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter involved in	--
23) Banking Details	Yes
24) Banking facility details	--
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	No
28) Incorporation details, if applicable	--
29) Last accounts filed at ROC	--
30) Major Shareholders, if available	--

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.51.35
UK Pound	1	Rs.80.97
Euro	1	Rs.69.26

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--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		36

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.