MIRA INFORM REPORT

Report Date :

18.10.2011

IDENTIFICATION DETAILS

Name :	RAHIL AIRBUBBLES PRIVATE LIMITED
Registered Office :	Survey No. 34, Plot No. 5/6, Veraval Shapar, Rajkot – 360002, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	12.07.2005
Com. Reg. No.:	04-046409
Capital Investment / Paid-up Capital :	Rs.20.000 Millions
CIN No.: [Company Identification No.]	U25200GJ2005PTC046409
TAN No.: [Tax Deduction & Collection Account No.]	RKTR01649E
PAN No.: [Permanent Account No.]	AADCR0455Q
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of EPS Sheet, EPC ICE Box, etc.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 82000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track records. The company has been successful in wipping – off the accumulated losses previous year. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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. Mayur Ranipa
Designation :	Marketing Manager
Contact No.:	91-9099655055
Date :	07.10.2011

LOCATIONS

Registered Office :	Survey No. 34, Plot No. 5/6, Veraval Shapar, Rajkot – 360002, Gujarat, India
E-Mail :	vibha.vaibhav@gmail.com rajesh_joshi_k@yahoo.co.in
Factory :	Survey No. 34, Plot No. 2-B, N.H.8-B, Shapar (Veraval), Rajkot – 360002, Gujarat, India
Tel. No.:	91-2827-254443
Fax No.:	91-2827-254443
Mobile No. :	91-9099655055 (Mr. Mayur Ranipa)
E-Mail :	info@rhynofoam.com
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :

Mr. Lalitbhai Karamshibhai Kagathara

Designation :

Director

Address :

Karam Paras Society, Nirmala Convent Road, Rajkot – 360005, Gujarat, India

Date of Birth/Age :

01.08.1957

Date of Appointment :

12.07.2005

DIN No.:

00430652

Other Directorship :

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
U15400GJ1993PTC018925	Rahil Foam Private Limited	Director	9/09/2003	9/09/2003	-	Active	NO
U25200GJ2005PTC046409	Rahil Airbubbles Private Limited	Director	12/07/2005	12/07/2005	-	Active	NO
U25202GJ2006PTC048958	Karam Multipack Private Limited	Additional director	19/04/2011	19/04/2011	-	Active	NO
U24100GJ2011PTC067372	Lkk Petrochem Private Limited	Director	7/10/2011	7/10/2011	-	Active	NO

Name :

Mr. Ravi Lalitbhai Kagathara

Designation :

Additional Director

Address :

Karam Paras Society, Nirmala Convent Road, Rajkot – 360005, Gujarat, India

Date of Birth/Age :

13.12.0985

Date of Appointment :

24.06.2008

DIN No.:

02230845

Name :

Mr. Mayur Maganbahi Kagathara

Designation :

Additional Director

Address :

At Depalia Tal. Paddhari, Rajkot – 360310, Gujarat, India

Date of Birth/Age :

16.09.1982

Date of Appointment :

24.06.2008

DIN No.:

02230846

Other Directorship :

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
U25200GJ2005PTC046409	Rahil Airbubbles Private Limited	Additional director	24/06/2008	24/06/2008	-	Active	NO
U74946GJ1993PTC020310	Fast Clour Lab Private Limited	Additional director	11/06/2010	11/06/2010	-	Active	YES

Name :

Mr. Sitanshu Rameshchandra Bhalodi

Designation :

Additional Director

Address :

Urmi Ravi Ratna Chowk, Near Prarthana Apartment, University Road, Rajkot – 360005, Gujarat, India

Date of Birth/Age :

27.02.1979

Date of Appointment :

24.06.2008

DIN No.:

02234855

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Kagathara Lalitbhai	177500
Kagathara Amaram Chhagan Bhai	4900
Bhesdadiya Ambhai Chaga Bhai	4900
Godhani Arvind Bhai	10000
Bhagiya Chhagan Bhai	14700
Kagathara Hansraj Bhai	65000
Gosara Dhanji Bhai	9800
Kagathara Devkaran Bhai	90000
Kagathara Karamsi Bhai	105000
Kagathara Keshavji Bhai	80000
Kagathara Magan Bhai	100000
Kamariya Manji Bhai	100000
Bhalodi Kimji Bhai	44850
Godhani Vallabh Bhai	20000
Dedhi Tapulal	9800

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of EPS Sheet, EPC ICE Box, etc.

Products :

ITEM CODE NO. (ITC CODE)	PRODUCT DESCRIPTION
N. A	Air Bubble Role

Terms :

Selling :

L/C/ Cash/ Credit (30 days)

Purchasing :

L/C/ Cash/ Credit (30 days/ 60 days)

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Air Bubble Rolls	Mtrs.	NA	NA	4824416
Non Woven Fabrics	Kgs.	NA	NA	1233913
Non Woven Bags	Kgs.	NA	NA	18738

Note : Installed capacity is as not applicable as the Company is an S.S.I. Unit.

GENERAL INFORMATION

Suppliers :

· Hongda Research Institute Company Limited

· J. P. Cloth

· Galaxy Electrical Company

· Sajay Shipping and Clearing Private Limited

· Silver Engineering Company

· St. George Enterprises

· Ocean Packaging

· Akshay Packaging Industries

· Poodar Pigment Limited

· Royal Screen Art

Customers :

· Aakansha Packing

· Aditya Enterprise

· Bharat Bags

· D.R. Enterprise

· Deccan Industrial Packaging

· Lotus Water Technology

· Mars Forge Private Limited

· Jemin Craft

· Paco Fine

· Rajani Cotton Gin and Pre

· Raghav Polymers India Private Limited

· Nirant Plastic

· National Manufacturers

· Shree Umiya Packers

· Steel Authority of India Limited

· Roll Well Forge Limited

· Vision Marketing

· Kaushik Cotton Corporation

No. of Employees :

50 (Approximately)

Bankers :

Bank of India, Panchnath Branch, Opposite Jansatta Press, Sadar, Rajkot – 360001, Gujarat, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Kotak Mahindra Prime Limited (secured against hypothecation of car)	0.920	0.000
From Bank of India (secured against hypothecation of plant and machineries and equitable mortgage of Factory Land and Building)	32.154	33.086
Working Capital Loan: From Bank of India (secured against hypothecation of current assets and equitable mortgage of Factory Land and Building)	34.152	33.546
Total	67.226	66.632
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
From Directors	2.653	3.459
From Shareholders	19.090	5.409
Intercorporate	0.000	2.500
Total	21.743	11.368

Financial Institute :	Kotak Mahindra Prime Limited
Banking Relations :	--
Auditors :
Name :	R. K. Doshi and Company Chartered Accountants
Address :	Aditya Centre, 2^nd Floor, Phulchhab Chowk, Rajkot – 360001, Gujarat, India
PAN.:	AAIFR8841C

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
2000000	Equity Shares	Rs.10/- each	Rs.20.000 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		20.000	20.000	20.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.508	0.000	0.000
4] (Accumulated Losses)		0.000	(2.032)	(5.870)
NETWORTH		20.508	17.968	14.130
LOAN FUNDS
1] Secured Loans		67.226	66.632	72.882
2] Unsecured Loans		21.743	11.368	11.534
TOTAL BORROWING		88.969	78.000	84.416
DEFERRED TAX LIABILITIES		1.511	0.732	0.000
TOTAL		110.988	96.700	98.546
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		69.793	54.211	58.809
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.613	10.598	13.191
	Sundry Debtors	21.858	21.401	21.171
	Cash & Bank Balances	0.602	1.048	0.357
	Other Current Assets	0.000	0.000	0.000
	Loans, Advances and Deposits	13.291	13.631	12.444
Total Current Assets		50.364	46.678	47.163
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	7.268	3.906	7.995
	Other Current Liabilities	0.768	0.358	0.585
	Provisions	1.641	0.938	0.363
Total Current Liabilities		9.677	5.202	8.943
Net Current Assets		40.687	41.476	38.220
MISCELLANEOUS EXPENSES		0.508	1.013	1.517
TOTAL		110.988	96.700	98.546

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	144.329	118.399	65.445
		Other Income	1.405	2.368	0.686
		TOTAL (A)	145.734	120.767	66.131
Less	EXPENSES
		Increase/ Decrease in Stock	(5.656)	6.306	(4.720)
		Manufacturing Expenses	128.595	89.598	62.308
		Selling, Administrative and Other Expenses	2.935	3.289	1.558
		Payments and Benefits to Employees and Directors	4.043	3.795	0.339
		TOTAL (B)	129.917	102.988	59.485
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.817	17.779	6.646
Less	FINANCIAL EXPENSES (D)		8.693	9.725	7.193
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7.124	8.054	(0.547)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.101	2.891	2.453
	PROFIT/LOSS BEFORE TAX (E-F) (G)		4.023	5.163	(3.000)
Less	TAX (H)		1.483	1.325	0.000
	PROFIT/ LOSS AFTER TAX (G-H) (I)		2.540	3.838	(3.000)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(2.032)	(5.870)	(2.870)
	BALANCE CARRIED TO THE B/S		0.508	(2.032)	(5.870)
	EARNINGS IN FOREIGN CURRENCY
		F. O. B value of Export	0.773	0.000	0.000
	TOTAL EARNINGS		0.773	0.000	0.000
	Earnings Per Share (Rs.)		1.27	1.92	1.50

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.74	3.18	4.54
Net Profit Margin (PBT/Sales)	(%)	2.78	4.36	4.58
Return on Total Assets (PBT/Total Assets}	(%)	3.34	5.11	2.83
Return on Investment (ROI) (PBT/Networth)		0.19	0.28	0.21
Debt Equity Ratio (Total Liability/Networth)		4.81	4.63	6.61
Current Ratio (Current Asset/Current Liability)		5.20	8.97	5.27

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report(Yes/No)
Year of Establishment	Yes
Locality of the firm	Yes
Constitutions of the firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s background	--
Number of employees	Yes
Name of person contacted	Yes
Designation of contact person	Yes
Turnover of firm for last three years	No
Profitability for last three years	No
Reasons for variation <> 20%	No
Estimation for coming financial year	No
Capital in the business	No
Details of sister concerns	No
Major suppliers	No
Major customers	No
Payments terms	Yes
Export/Import details (if applicable)	No
Market Information	--
Litigations that the firm/ promoter involved in	--
Banking Details	Yes
Banking facility details	No
Conduct of the banking account	--
Buyer visit details	--
Financials, if provided	No
Incorporation details, if applicable	--
Last accounts filed at ROC	--
Major Shareholders, if available	--

FORM 8

Corporate identity number of the company	U25200GJ2005PTC046409
Name of the company	RAHIL AIRBUBBLES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No 34, Plot No. 5/6 Veraval Shapar, Rajkot – 360002, Gujarat, India Email Id : vibha.vaibhav@gmail.com
This form is for	Modification of charge
Charge Identification number	80035180
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	Bank of India, Panchnath Branch, Opposite Jansatta Press, Sadar, Rajkot – 360001, Gujarat, India Email Id : panchnath.rajkot@bankofindia.co.in
Nature of instrument creating charge	· Supplemental Deed of Hypothecation · Supplemental Memorandum of Deposit of Title Deeds
Date of instrument Creating the charge	18.11.2010
Amount secured by the charge	Rs.89.068 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 3.50% over base rate i.e. 12% pa. Terms of repayment · Cash Credit repayable on demand · Old Term Loan repayable in 60ESMI of Rs.0.193 Millions commencing from April, 2010. · New Term Loan of Rs.12.800 Millions repayable in 60 EMI of Rs.0.295 Millions commencing from April, 2011. Margin · C. C. (Stock) -25% · C. C. Book Debts – 40% · Old Term Loan – 25% · New Term Loan – 26.40% Extent and operation of the charge · Charge to secure advances of Rs.89.068 Millions · Charge to act as continuing security · Mortgage also covers personal loan of Rs.2.000 Millions Other Mortgage also covers personal loan of Rs.2.000 Millions
Short particulars of the property charged (Including location of the property)	· All Tangible movable assets including stock of raw materials i.e. LDPE, LLDPE, POLYPROPYLENE POLYMERS etc., movable Machinery, Stores and Spares parts, Furniture, Finished and Semi Finished Goods. · All present and future Book Debts, Money Receivables, Claims · Machineries Described in Schedule II, Part A to the Hypothecation Deed · Extension of Equitable Mortgage of Factory Land, Building and Immovable Properties situated at Plot No. 5 and 6, Shapar (Veraval), Rajkot · Equitable mortgage of Factory Land, Building and Immovable Properties situated at Plot No. 10, Survey No. 34(P) ADM. 1427.02 Sq.mtrs. at NH8B, Shapar (Veraval), Rajkot · Equitable Mortgage of personal, residential properties of Smt. Ilaben Kagathra, Shri Dev Karan Bhai K. Kagathra and Shri Vallabhbhai Godhani as per the mortgage Deed
Date of Last Modification	05.01.2010
Particulars of the present modification	Bank has granted New Term Loan of Rs.12.800 Millions, aggregate advances stand at Rs.89.068 Millions (1. CC – Stock limit enhanced from Rs.20.000 Millions to Rs.35.000 Millions and 2. CC – Book debts limit enhanced from Rs.17.500 Millions to Rs.35.000 Millions, subject to maximum of 1 and 2 at Rs.35.000 Millions. Old Term Loan of Rs.26.268 Millions, New Term Loan Rs.12.800 Millions, aggregating to Rs.89.068 Millions). Advances are further secured by mortgage of the additional properties as per the mortgage deed.

FIXED ASSETS

· Land

· Factory Land –Shed (New)

· Electric Fitting Exp.

· Factory Building

· Factory Building (New) – WIP

· Computer

· Office Equipment

· Plant and Machinery

· Imported Machinery

· Weighing Machine

· Air conditioner

· 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] 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.48.89
UK Pound	1	Rs.77.31
Euro	1	Rs.67.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
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	3
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.