1. Summary Information

		Country	India
Company Name	Lipap Systems Private Limited	Principal Name 1	Mr. Varun Praveen Khandelwal
Status	Satisfactory	Principal Name 2	Mr. Praveen Loknath Khandelwal
		Registration #	11-46204
Street Address	A - 213, Virwani Industrial Estate, Western Express Highway, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Established Date	12.02.1988	SIC Code	--
Telephone#	91-22-28743716 / 28743916/ 28743457/ 28759382	Business Style 1	Manufacturing
Fax #	91-22-28743716 / 28743916	Business Style 2	Exporting
Homepage	http://www.lipap.com	Product Name 1	Computer Ribbons
# of employees	60 (Approximately)	Product Name 2	Typewriter Ribbons
Paid up capital	Rs.6,675,000/-	Product Name 3	Electronic Typewriter Ribbons
Shareholders	Directors or relatives of Directors (100.00%)	Banking	Bank of Baroda
Public Limited Corp.	NO	Business Period	23 Years
IPO	NO	International Ins.	-
Public Enterprise	NO	Rating	Ba (46)
Related Company
Relation	Country	Company Name	CEO
--	--	--	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	13,032,000	Current Liabilities	8,520,000
Inventories	27,385,000	Long-term Liabilities	25,418,000
Fixed Assets	13,523,000	Other Liabilities	2,231,000
Deferred Assets	0,000	Total Liabilities	36,169,000
Invest& other Assets	3,000	Retained Earnings	11,099,000
		Net Worth	17,774,000
Total Assets	53,943,000	Total Liab. & Equity	53,943,000
Total Assets (Previous Year)	51,259,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	45,608,000	Net Profit	56,000
Sales(Previous yr)	44,579,000	Net Profit(Prev.yr)	(559,000)

MIRA INFORM REPORT

Report Date :

24.11.2011

IDENTIFICATION DETAILS

Name :	LIPAP SYSTEMS PRIVATE LIMITED
Registered Office :	A - 213, Virwani Industrial Estate, Western Express Highway, Goregaon (East), Mumbai – 400 063, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.02.1988
Com. Reg. No.:	11-46204
Capital Investment / Paid-up Capital :	Rs.6.675 millions
CIN No.: [Company Identification No.]	U32305MH1988PTC046204
IEC No.:	0389034711
TAN No.: [Tax Deduction & Collection Account No.]	MUML02128A
PAN No.: [Permanent Account No.]	AAACL0121A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Printers Consumables.
No. of Employees :	60 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 71000
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 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Praveen Khandelwal
Designation :	Director
Contact No.:	91-9867369205

LOCATIONS

Registered Office :	A - 213, Virwani Industrial Estate, Western Express Highway, Goregaon (East), Mumbai – 400 063, Maharashtra, India
Tel. No.:	91-22-28743716 / 28743916/ 28743457/ 28759382
Mobile No.:	91-9867369205 (Mr. Praveen Khandelwal)
Fax No.:	91-22-28743716 / 28743916
E-Mail :	lipap@vsnl.com aashish82_cs@rediffmail.com sales@lipap.com accounts@lipap.com
Website :	http://www.lipap.com
Area :	2000 sq ft
Location :	Owned
Factory :	Indo Industrial Estate No. 4, Plot No. 38, First Floor, Navghar, Vasai (East), Thane - 401 210, Maharashtra, India Tel. No.: 91-22-29271307 Fax No.: 91-22-29271310 Also Located at · Himachal Pradesh Area : 10000 sq ft (Vasai + Himachal Pradesh) Location : Rented

DIRECTORS

As On 23.09.2010

Name :

Mr. Varun Praveen Khandelwal

Designation :

Director

Address :

Hem Nivas, 87, S V road, Kandivali (West), Mumbai – 400 067, Maharashtra, India.

Date of Birth/Age :

24.05.1980

Qualification :

M.B.A.

Date of Appointment :

14.08.2002

DIN No. :

01233179

Other Directorship :

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U32305MH1988PTC046204	Lipap Systems Private Limited	Director	14-08-02	14-08-02	Active	NO
2	U51494MH2008PTC185070	Azakta Fashion Private Limited	Director	25-07-08	25-07-08	Active	YES

Name :

Mr. Praveen Loknath Khandelwal

Designation :

Director

Address :

Hem Nivas, 87, S V road, Kandivali (West), Mumbai – 400 067, Maharashtra, India.

Date of Birth :

10.03.1955

Qualification :

B.Com

Date of Appointment :

14.08.2002

DIN No. :

01233212

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As On 23.09.2010

Names of Shareholders	No. of Shares
Praveen Loknath khandelwal	420000
Varun Praveen khandelwal	147000
Nisha khandelwal	100500
Total	667500

As On 23.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Printers Consumables.
Products :	· Computer Ribbons · Typewriter Ribbons · Electronic Typewriter Ribbons · Thermal transfer Ribbons · Correction Tapes · Ribbon Cassettes · Pan Cakes
Exports :
Product :	Electronic Typewriter and Printer Ribbons
Countries :	· South Africa · USA · Gulf Countries
Imports :
Product :	Raw Materials
Countries :	· Germany · Korea · Europe
Terms :
Selling :	L/C, Cash, Credit (30 days)
Purchasing :	L/C, Cash, Credit (30 days)

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Ribbon cassettes	Nos	200000	98897
Pancakes	Sq.mts	1000000	100 Nos
Correction tapes	Nos	1300000	--
Spool ribbons	Nos	1500000	6629
Inkjet refills	Nos	150000	--
Thermal transfer ribbon	Nos	45000	13419
Refill packs	Nos	--	110791

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

· End Users

· OEM’s

No. of Employees :

60 (Approximately)

Bankers :

· Bank of Baroda, BFS BR, Mathru Ashish Building, S V Road Kandivali (West), Mumbai – 400 067, Maharashtra, India

· HDFC Bank

· Standard Chartered Bank

· Kotak Mahindra Bank Limited

Facilities :

Particulars	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Secured Loans
From Bank of Baroda/ Cash Credit A/c (Secured against premises, Raw Material and Finished Goods	18.122	17.561
HDFC Bank car loss – 12462960 (Secured by the Vehicle) HDFC Bank car loss – 12519447 (Secured by the Vehicle) (*) Also collateraly secured by factory (unit No. A-213/210 only) and personal guarantee of directors	0.105 0.124	0.249 0.274
Total	18.351	18.084
Unsecured Loans
Standard Chartered Bank – Loan	2.136	2.113
Kotak Mahindra Bank Limited - 2555023	0.682	1.435
From Directors	4.249	3.066
Total	7.067	6.614

Banking Relations :	--
Auditors:
Name :	Salgia and Company Chartered Accountants
Address :	3, Suresh Sadan, Daulat Nagar, Road No. 4, Borivali (East), Mumbai – 400 066, Maharashtra, India
Tel No.:	91-22-28918689

CAPITAL STRUCTURE

As on 31.03.2010

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
667500	Equity Shares	Rs.10/- each	Rs.6.675 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		6.675	6.675	6.675
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		11.099	11.289	11.636
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		17.774	17.964	18.311
LOAN FUNDS
1] Secured Loans		18.351	18.084	18.683
2] Unsecured Loans		7.067	6.614	2.273
TOTAL BORROWING		25.418	24.698	20.954
DEFERRED TAX LIABILITIES		1.794	1.832	1.677
TOTAL		44.986	44.494	40.942
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.523	15.575	15.590
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.003	0.003	0.003
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.385	26.021	19.277
	Sundry Debtors	8.422	6.106	7.096
	Cash & Bank Balances	1.506	1.173	1.429
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.104	2.381	4.973
Total Current Assets		40.417	35.681	32.775
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.068	5.091	2.925
	Other Current Liabilities	1.452	1.469	1.936
	Provisions	0.437	0.205	3.046
Total Current Liabilities		8.957	6.765	7.907
Net Current Assets		31.460	28.916	24.868
MISCELLANEOUS EXPENSES		0.000	0.000	0.481
TOTAL		44.986	44.494	40.942

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	45.608	44.579
		Other Income	0.335	0.174
		TOTAL (A)	45.943	44.753
Less	EXPENSES				NA
		Material consumed, manufacturing and other expenses	40.978	41.039
		Prior period adjustments	0.250	(0.103)
		TOTAL (B)	41.228	40.936
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		4.715	3.817	4.568
Less	FINANCIAL EXPENSES (D)		2.987	2.694	2.597
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.728	1.123	1.971
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.479	1.390	1.471
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		0.249	(0.267)	0.500
Less	TAX (H)		0.193	0.291	0.089
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		0.056	(0.559)	0.411
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		8.627	8.727	8.316
Less	APPROPRIATIONS
		Dividend	0.000	0.000	0.000
		Corporate tax	0.000	0.000	0.000
		Deferred tax adjusted	0.000	(0.076)	0.000
		Prior period income tax	0.000	(0.024)	0.000
		Deprecation adjustment for prior year	0.000	(0.359)	0.000
	BALANCE CARRIED TO THE B/S		8.683	8.627	8.727
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.000	0.516	NA
	TOTAL EARNINGS		0.000	0.516	NA
	Earnings Per Share (Rs.)		0.08	(0.84)	NA

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	0.12	(1.25)	NA
Net Profit Margin (PBT/Sales)	(%)	0.55	(0.60)	NA
Return on Total Assets (PBT/Total Assets}	(%)	0.46	(0.52)	1.03
Return on Investment (ROI) (PBT/Networth)		0.01	(0.01)	0.03
Debt Equity Ratio (Total Liability/Networth)		1.93	1.75	1.58
Current Ratio (Current Asset/Current Liability)		4.51	5.27	4.15

LOCAL AGENCY FURTHER INFORMATION

FORM 8

This form is for	Creation of charge
Charge identification number of the modified	U32305MH1988PTC046204
Name of the company	LIPAP SYSTEMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	A -213, Virwani Industrial Estate, Western Express Highway, Goregaon (East), Mumbai – 400 063, Maharashtra
Type of charge	Book Debts Movable Property Immovable Property
Particular of charge holder	Bank of Baroda Address: BFS, BR, Mathru Ashish Building, S V Road Kandivali (West), Mumbai – 400 067, Maharashtra, India. E-Mail: intmum@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Supplemental composite agreement of hypothecation of goods, book debts, movable machinery and vehicles, Supplemental Memorandum of entry relating to extension of equitable mortgage by deposit of title deed by constructive delivery dated -21.04.2007
Date of instrument Creating the charge	21.04.2007
Amount secured by the charge	Rs.12.700 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of interest: Cash credit: 5% Below prime lending rate. Terms of repayment: On demand Margin: 25% On stock and book debts Extent and operation of the charge: As per agreement
Short particulars of the property charged	Hypothecation of all stocks and book debts and packing material and movable machinery and all stores and spares parts. Equitable mortgage of Flat No. A/213, area 1050 sq.fts on the 2^nd Floor, Virwani Industrial Estate, Goregaon (East), Mumbai – 400 063 Equitable mortgage of Flat No. 210, 2^nd Floor, Virwani Industrial Estate, Goregaon (East), Mumbai – 400 063

Name of the company	LIPAP SYSTEMS PRIVATE LIMITED
Presented By	Bank of Baroda Address: BFS, BR, Mathru Ashish Building, S V Road Kandivali (West), Mumbai – 400 067, Maharashtra
1) Date and description of instrument creating the change	Composit Hypothecation Agreement dated 12.01.2005
2) Amount secured by the charge/amount owing on the securities of charge	Cash Credit (Stock) – Rs. 0.300 million
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	· All present and future goods, stock, raw material, semi finished and finished stocks as specified in agreement · All present and future book debts, outstanding, monies receivables, claims, bills, contracts engagement etc. as specified in agreement. · All tangible movable property machinery and plant and cranes, boats and crafts and the vehicles together with spares, tools and accessories and other movables, both present and future and the furniture and fittings and office equipments, etc as specified in the agreement.
4) Gist of the terms and conditions and extent and operation of the charge.	Margin security and rate of interest as per bank rules
5) Name and Address and description of the person entitled to the charge.	Bank of Baroda Address: BFS, BR, Mathru Ashish Building, S V Road Kandivali (West), Mumbai – 400 067, Maharashtra
6) Date and brief description of instrument modifying the charge	NA
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	NA

TRADE REFERENCES

· Param Creative Solutions, Pune

· Amcon Technologies, Mumbai

FIXED ASSETS

· Factory Building

· Plant and machinery

· Electric installation

· Dies and blocks

· Furniture and fixtures

· Office equipment

· Fire equipments

· Computer

· Cycle

· Motor car

· Motor cycle

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.52.10
UK Pound	1	Rs.81.30
Euro	1	Rs.70.07

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	6
--PROFITABILIRY	1~10	4
--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		46

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.