MIRA INFORM REPORT

Report Date :

24.10.2011

IDENTIFICATION DETAILS

Name :	CANFLEX ENGINEERING PRIVATE LIMITED
Registered Office :	C-8/3, Industrial Estate, Sanath Nagar, Hyderabad – 500018, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	09.07.2002
Com. Reg. No.:	01-39279
Capital Investment / Paid-up Capital :	Rs.1.500 Millions
CIN No.: [Company Identification No.]	U29199AP2002PTC039279
TAN No.: [Tax Deduction & Collection Account No.]	HYDC01848A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Packaging Machines for Flexible Pouches, Materials Handling Equipment, Granules Filling Machine, Power Filling Machine etc.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 14000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The management has not filed its latest financials of the company with the government departments. Trade relations are reported as fair. Business is active. Payments are unknown. The company can be considered for business dealings with some caution.

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. Madhu
Designation :	Accountant
Contact No.:	91-40-23716699
Date :	19.10.2011

LOCATIONS

Registered/ Corporate Office :	C-8/3, Industrial Estate, Sanath Nagar, Hyderabad – 500018, Andhra Pradesh, India
Tel. No.:	91-40-23716699
Mobile No.:	91-9848184590 (Mr. K. Srinivas)
Fax No.:	91-40-23813884
E-Mail :	info@canonindia.com
Website :	http://www.canonindia.com
Area :	7500 Sq. Ft.
Location :	Owned
Factory 1:	7-2-C8/A, Sanath Nagar, Hyderabad – 500018, Andhra Pradesh, India
Factory 2:	C-33/A, Sanath Nagar, Hyderabad – 500018, Andhra Pradesh, India

DIRECTORS

(AS ON 30.09.2009)

Name :	Mr. K. Srinivas
Designation :	Managing Director
Address :	7-1-70/D/39, Flat No.3G, Arunodaya Apartment, D.K. Road, Ameerpet, Hyderabad – 500016, Andhra Pradesh, India
Date of Birth/Age :	28.03.1965
Qualification :	B.Com
Date of Appointment :	09.07.2002
DIN No.:	00619037
Name :	Mr. K. Jyothi
Designation :	Director
Address :	7-1-70/D/39, Flat No.3G, Arunodaya Apartment, D.K. Road, Ameerpet, Hyderabad - 500016, Andhra Pradesh, India
Date of Birth/Age :	01.04.1976
Qualification :	M. Sc.
Date of Appointment :	09.07.2002
DIN No.:	00619098

KEY EXECUTIVES

Name :	Mr. Madhu
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2009)

Names of Shareholders	No. of Shares
K. Srinivas	145000
K. Jyothi	5000
Total	150000

Equity Share Break (Percentage of Total Equity)

(AS ON 30.09.2009)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Packaging Machines for Flexible Pouches, Materials Handling Equipment, Granules Filling Machine, Power Filling Machine etc.
Products :	· Fully Automatic Mechanically Operated Machine to Pack Free Flowing Liquids · Fully Automatic Pneumatically Operated Machine to Pack Viscous and Oils · Fully Automatic Pneumatically Operated Machine to Pack Viscous and Semi-solids · Fully Automatic Pneumatically Operated Machine to Pack Powders · Fully Automatic Pneumatically Operated Machine to Pack Granular Products · Fully Automatic Pneumatically Operated Machine to Pack Uneven Products · Granules Filling Machine · Powder Filling Machine · Material Handling Equipments.
Exports :
Products :	· Powder Filling Machine · Pack Viscous and Oils · Pack Free Flowing Liquids
Countries :	· African Countries · Middle East · Dubai
Imports :
Products :	Spare Parts
Countries :	· China · Taiwan
Terms :
Selling :	L/C, Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

· Transtec Gears Private Limited

Customers :

Wholesalers, Retailers and End Users

· Nuziveedu Private Limited

No. of Employees :

50 (Approximately)

Bankers :

· Bank of Baroda,

Masab Tank Branch, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India

· ICICI Bank Limited

Facilities :

Secured Loans	31.03.2009 (Rs. In Millions)
Bank of Baroda - CC	4.227
Bank of Baroda – TL	0.229
Total	4.456
Unsecured Loans	31.03.2009 (Rs. In Millions)
Due to Directors	0.616
Citi Bank Loan	0.450
American Express Bank	0.177
Total	1.243

Banking Relations :	--
Auditors :
Name :	K. Rama Mohana Rao Chartered Accountants
Address :	5-9-29/40, Flat No.-14, Gopal Bhavan, Basheer Bagh, Palance Colony, Hyderabad – 500063, Andhra Pradesh, India
Tel No. :	91-40-23260393
Pan No.:	AGFPK9429A
Memberships :	· Engineering Export Promotion Council (EEPC) · Indian Institute of Packaging (IIP)
Associates/Subsidiaries :	· Canon Enterprises Address: P.B. No. 1919, D.No. 7-7-C8/A and C33/A, I.E. Sanath Nagar, Hyderabad – 500018, Andhra Pradesh, India Line of Business: Manufacturer, Exporter and Importer of Packaging Machines for Flexible Pouches.

CAPITAL STRUCTURE

AS ON 29.09.2009

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Share	Rs.10/- Each	Rs.2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
150000	Equity Share	Rs.10/- Each	Rs.1.500 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		1.500	1.500	1.500
2] Share Application Money		1.000	1.000	1.000
3] Reserves & Surplus		0.897	0.582	0.402
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3.397	3.082	2.902
LOAN FUNDS
1] Secured Loans		4.456	4.661	4.510
2] Unsecured Loans		1.243	1.887	2.076
TOTAL BORROWING		5.699	6.548	6.586
DEFERRED TAX LIABILITIES		0.066	0.130	0.130
TOTAL		9.162	9.760	9.618
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		4.000	4.191	4.222
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	8.863	9.532	10.208
	Sundry Debtors	6.764	6.263	5.303
	Cash & Bank Balances	1.201	1.104	0.659
	Other Current Assets	0.007	0.000	0.003
	Loans & Advances	0.165	0.145	0.136
Total Current Assets		17.000	17.044	16.309
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.003	5.993	6.192
	Other Current Liabilities	5.660	5.287	4.549
	Provisions	0.175	0.195	0.172
Total Current Liabilities		11.838	11.475	10.913
Net Current Assets		5.162	5.569	5.396
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		9.162	9.760	9.618

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
Turnover		23.829	22.931	16.604
PROFIT AFTER TAX		0.314	0.181	0.015
EARNINGS IN FOREIGN CURRENCY
	Export Earnings	10.375	7.875	4.256

Particulars	31.03.2011
Sales Turnover (Approximately)	47.000

Expected Sales (2011-12): Rs.50.000 Millions.

The above information has been parted by Mr. Madhu.

KEY RATIOS

PARTICULARS	31.03.2009	31.03.2008	31.03.2007
Debt Equity Ratio (Total Liability/Networth)	5.16	5.85	6.03
Current Ratio (Current Asset/Current Liability)	1.44	1.49	1.49

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	------
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	Yes
Profitability for last three years	------
Reasons for variation <> 20%	------
Estimation for coming financial year	Yes
Capital in the business	No
Details of sister concerns	Yes
Major Suppliers	Yes
Major Customers	Yes
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	------
Litigations that the firm/ Promoters Involved in	------
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	------
Buyer visit details	------
Financials, if provided	No
Incorporation details is applicable	------
Last Accounts filed at ROC	------
Major Shareholders, if available	------

PERFORMANCE, PROFITABILITY AND OUTLOOK FOR THE FUTURE

The company has achieved a sales turnover of Rs.23.829 Millions. It earned a net profit after taxes of Rs. 0.314 Million. It is expected more impressive turnover including Exports and earn more profits in the years to come.

TRADE REFERENCES:

· Transtec Gears Private Limited

· Nuziveedu Private Limited

Bankers Charges Report as per Registry

Corporate identity number of the company	U29199AP2002PTC039279
Name of the company	CANFLEX ENGINEERING PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	P.B. No. 1919, D No. 7-2-C8/A and C33/A, I.E. Sanath Nagar, C-8/3, Industrial Estate, Sanath Nagar, Hyderabad-500018, Andhra Pradesh, India
This form is for	Modification of charge
Charge identification number of the charge to be modified	90138415
Type of charge	Immovable Property Book Debts Movable Property
Particular of charge holder	Bank of Baroda Masab Tank Branch, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India E-mail : masabt@bankofbaroda.co.in
Nature of instrument creating charge	Supplemental Memorandum of Entry Supplemental Composite Agreement of Hypothecation of Goods, Book-debts, Movable Machinery and Vehicles.
Date of instrument Creating the charge	04.03.2010
Amount secured by the charge	Rs.5.692 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit (Rs.5.500 Millions)- 2.25% above BPLR i.e. 15.50% p.a. (at present) with monthly rests. Term Loan (Rs.0.192 Million) – Existing Terms Prevail Terms of Repayment Cash Credit – 12 months subject to annual review Term Loan- 35 months subject to annual review Margin For CC: - Stocks 25% - Book Debts 50% For Term Loan: - Machinery 25% Extent and Operation of the charge The charge operates as first charge on the fixed and current assets of the company, for the due repayment of the limits together with interest, penal interest and penalties if any.
Short particulars of the property charged	Primary: - Hypothecation of Stocks and Book Debts (for CC) - Hypothecation of Machinery (Fro Term Loan) Collateral: (both for CC and Term Loan) 1. Equitable mortgage of factory land and buildings admeasuring 746.50 sq. yds, ground and first floors, plot No. C-8, Industrial Estate, Sanathnagar, Hyderabad 2. Equitable mortgage of factory land admeasuring 155 sq. yds. In Plot No. C-33, Bloc No. 11, Industrial Estate, Sanathnagar, Hyderabad
Particulars of the present modification	Overall limits enhanced form Rs.4.258 Milions to Rs.5.692 Millions as follows: CC: Rs.5.500 Millions TL : Rs.0.192 Million Total : Rs.5.692 Millions

FIXED ASSETS:

· Land

· Buildings

· Plant and Machinery

· Furniture and Fixtures

· Vehicles

· Office Equipment

· Air Conditioner

· Computers

· Fax Machine

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.50.07
UK Pound	1	Rs.79.16
Euro	1	Rs.69.04

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		26

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.