MIRA INFORM REPORT

Report Date :

15.09.2011

IDENTIFICATION DETAILS

Name :	WELPACK INDUSTRIES LIMITED
Registered Office :	87, Government Industrial Estate, Ganesh Nagar, Charkop, Kandivali (West), Mumbai – 400 067, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	28.11.2002
Com. Reg. No.:	11-138024
Capital Investment / Paid-up Capital :	Rs.21.221 Millions
CIN No.: [Company Identification No.]	U25200MH2002PLC138024
TAN No.: [Tax Deduction & Collection Account No.]	MUMW02087B
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer, Exporter and Importer of wide range of shopping bags, rolls, zip lock bags, flat bags, etc.
No. of Employees :	370 [20 In Office + 350 in Factory] Approximately

RATING & COMMENTS

MIRA’s Rating :

B (34)

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

Maximum Credit Limit :	USD 286000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. 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 caution.

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. Deepak
Designation :	General Manager
Contact No.:	91-9324213929
Date :	13.09.2011

LOCATIONS

Registered Office :	87, Government Industrial Estate, Ganesh Nagar, Charkop, Kandivali (West), Mumbai – 400 067, Maharashtra, India
Tel. No.:	91-22-28678111
Mobile No. :	91-9324213929 [Mr. Deepak]
Fax No.:	91-22-28695035
E-Mail :	Deepak@welpackind.com info@welpackind.com
Website :	www.welpackind.com
Area :	1200 Sq.ft.
Location :	Rented
Factory :	192/2, Sayli, Near Castrol, Silvassa-396 230, UT of D and NH, India
Area :	1.7 Acres
Location :	Owned

DIRECTORS

As on 30.09.2010

Name :

Mr. Arvind Sanghvi

Designation :

Director

Address :

5, Vandana Adarsh Society Road, Opposite Carmel High School, Marve Road, Malad (West), Mumbai – 400 064, Maharashtra, India

Date of Birth/Age :

04.08.1951

Date of Appointment :

28.11.2002

DIN :

01380557

Other Directorship :

Top of Form S.No. Bottom of Form	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	U25200MH2002PLC138024	WELPACK INDUSTRIES LIMITED	Director	28/11/2002	28/11/2002	Active	NO

Name :

Mr. Nimesh Sanghvi

Designation :

Director

Address :

5, Vandana Adarsh Society Road, Opposite Carmel High School, Marve Road, Malad (West), Mumbai – 400 064, Maharashtra, India

Date of Birth/Age :

03.11.1974

Date of Appointment :

20.07.2006

DIN :

00832314

Other Directorship :

Top of Form S.No. Bottom of Form	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	U25200MH2002PLC138024	WELPACK INDUSTRIES LIMITED	Director	20/07/2006	20/07/2006	Active	NO

Name :

Mr. Vikram Arvindkumar Sanghvi

Designation :

Director

Address :

5,Vandana Opp Carmel School Adarsh Soc Rd, Off Marve Rd Malad (West) , Mumbai – 400064, Maharashtra, India

Date of Birth/Age :

01.01.1977

Date of Appointment :

30.09.2010

DIN :

02212285

Other Directorship :

Top of Form S.No. Bottom of Form	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	U25200MH2002PLC138024	WELPACK INDUSTRIES LIMITED	Director	30/09/2010	1/4/2010	Active	NO

Name :

Mr. Rekha Arvind Sanghvi

Designation :

Director

Address :

5,Vandana Opp Carmel School Adarsh Soc Rd, Off Marve Rd Malad (West) , Mumbai – 400064, Maharashtra, India

Date of Birth/Age :

24.10.1951

Date of Appointment :

30.09.2010

DIN :

03049166

Other Directorship :

Top of Form S.No. Bottom of Form	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	U25200MH2002PLC138024	WELPACK INDUSTRIES LIMITED	Director	30/09/2010	1/4/2010	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders	No. of Shares
Equity Shares [Having Voting Rights]
Arvind Sanghvi	243800
Arvind Sanghvi [HUF]	30000
Vikram Sanghvi	54739
Nimesh Sanghavi	46500
Hetal N Sanghvi	75810
Rekha Sanghvi	89261
Priti Sanghavi	57000
Equity Shares [Having Non-Voting Rights]
Arvind Sanghvi	133000
Rekha Sanghvi	59500
Nimesh Sanghavi	165674
Hetal N Sanghvi	79690
Vikram Sanghvi	164435
Arvind Sanghvi [HUF]	118343
Priti Sanghavi	97000
Manju Vijayraj Mehta	15000
Navin Shah	20000
Sheetal N. Shah	5000
Vijayraj Mehta	25000

As on 30.09.2010

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	95.61
Other top fifty shareholders	4.39
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of wide range of shopping bags, rolls, zip lock bags, flat bags, etc.
Brand Names :	Blue Diamond SP Tape
Exports :
Products :	Shopping Bags, Rolls, etc.
Countries :	UK USA
Imports :
Products :	Raw Material Finished Goods
Countries :	Saudi Arabia UK
Terms :
Selling :	L/C / Cash / Credit
Purchasing :	L/C / Cash / Credit

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Plastic Bags, Tubing and Sheets	MT	13000	8540.59

GENERAL INFORMATION

Customers :

Others – Dealer / Distributor

No. of Employees :

370 [20 In Office + 350 in Factory] Approximately

Bankers :

• HDFC Bank Limited, HDFC House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India
• Central Bank of India, J.B. Nagar Branch, Andheri Kurla Road, Mumbai – 400 059, Maharashtra, India

Facilities :

Secured Loans :	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Long Term Loans Term Loan (Secured against Wind Mill and guarenteed by Directors jointly and severally.)	11.881	16.797
Short Term Loans Cash Credit/Working Capital Loan from Banks (Secured by hypothecation and Pledge of Stock and First Charge on immovable properties and guaranteed by Directors jointly and severally.)	39.110	100.594
Total	50.991	117.391
Unsecured Loan	31.03.2010 Rs. in Millions	31.03.2009 Rs. in Millions
Short term loans and advances from bank / financial interest	5.987	11.297
Total	5.987	11.297

Banking Relations :	-
Auditors :
Name :	J D Shah and Associates Chartered Accountants
Address :	14, Garud Chamber, 57/59, Kazi Saiyed Street, Musjid Bunder, Mumbai - 400 053, Maharashtra, India
Tel. No.:	91-22-23421044 / 23461044
Mobile No.:	91-9820094761
Associates :	Sanghvi Polymers Address : 5, Vandana, AdarshSociety Road, Opposite Carmal High School, Marve Road, Malad West, Mumbai – 400064, Maharashtra, India Activity : Manufacturer, Exporter and Importer of wide range of shopping bags, rolls, zip lock bags, flat bags, etc. Rayan Plast Plastic House – Surat Stationery Station

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
3,000,000	Equity Shares	Rs.10/- each	Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2,122,110	Equity Shares	Rs.10/- each	Rs.21.221 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		21.221	20.371	20.371
2] Share Application Money		13.900	10.700	0.000
3] Reserves & Surplus		36.542	13.670	45.645
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		71.663	44.741	66.016
LOAN FUNDS
1] Secured Loans		50.991	117.391	118.105
2] Unsecured Loans		5.987	11.297	0.000
TOTAL BORROWING		56.978	128.688	118.105
DEFERRED TAX LIABILITIES		4.483	5.421	5.039
TOTAL		133.124	178.850	189.160
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		51.057	48.932	58.554
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	23.601	25.297	83.492
	Sundry Debtors	63.824	40.090	64.645
	Cash & Bank Balances	6.833	8.470	1.324
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	23.179	124.217	34.198
Total Current Assets		117.437	198.074	183.659
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	19.205	55.997	45.633
	Other Current Liabilities	11.115	6.012	1.273
	Provisions	5.050	6.147	6.147
Total Current Liabilities		35.370	68.156	53.053
Net Current Assets		82.067	129.918	130.606
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		133.124	178.850	189.160

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	432.287	393.577	547.174
		Other Income	1.179	0.441	4.414
		TOTAL (A)	433.466	394.018	551.588
Less	EXPENSES
		Cost of goods Manufactured	388.030	364.628	499.098
		Administration and other Expenses	5.380	6.252	5.531
		Selling and Distribution Expenses	2.375	5.202	4.889
		TOTAL (B)	395.785	376.082	509.518
Less	PROFIT / LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		37.681	17.936	42.070
Less	FINANCIAL EXPENSES (D)		12.345	34.542	9.672
	PROFIT / LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		25.336	[16.606]	32.398
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.552	5.072	8.143
	Extraordinary Items		[2.541]	[9.914]	0.000
	PROFIT / LOSS BEFORE TAX (E-F) (G)		16.243	(31.592)	24.255
Less	TAX (H)		0.981	0.383	4.782
	Excess Income Tax Provision		0.040	0.000	[0.149]
	PROFIT / LOSS AFTER TAX (G-H) (I)		15.222	(31.975)	19.324
	BALANCE CARRIED TO THE B/S		15.222	[31.975]	19.324
	EARNINGS IN FOREIGN CURRENCY		0.000	1.305	3.800
	IMPORTS
		Raw Materials	31.636	44.514	55.269
		Capital Goods	3.953	0.104	1.723
	TOTAL IMPORTS		35.589	44.618	56.992
	Earnings Per Share (Rs.)		7.18	--	--

Particulars	31.03.2011
Sales Turnover [Approximately]	450.000

Expected Sales ( 2011-2012 ) : Rs.500.000 millions

The above information has been parted by Mr. Deepak [General Manager].

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.51	(8.11)	3.50
Net Profit Margin (PBT/Sales)	(%)	3.76	(8.03)	4.43
Return on Total Assets (PBT/Total Assets}	(%)	9.64	12.79)	10.01
Return on Investment (ROI) (PBT/Networth)		0.23	(0.71)	0.37
Debt Equity Ratio (Total Liability/Networth)		1.29	4.40	2.59
Current Ratio (Current Asset/Current Liability)		3.32	2.91	3.46

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)	31.03.2008 (Rs. in millions)
Outstanding dues of micro enterprises and small enterprises	18.040	54.934	43.366
Outstanding dues of creditors other than micro enterprises and small enterprises	1.165	1.063	2.267
Total	19.205	55.997	45.633

Trade References :

• D’Mart
• Big Bazaar
• Food Bazaar

Nature of Operation :

A company, a public limited company, is engaged primarily in the business of Manufacturing, trading and exporting of plastic bags [plain and printed nature]

Apart from the above the company has initiated a wind mill project for generation and sale of power, power generated through the windmill is sold to Maharashtra state electricity distribution company limited at agreed rate of 3.80 per kwh. Company has initiated this operation two years back and the plant of the company is situated at ektare [panchpatta] village, ahmednagar.

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	80021145
Corporate identity number of the company	U25200MH2002PLC138024
Name of the company	WELPACK INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	87, Government Industrial Estate, Ganesh Nagar, Charkop, Kandivali (West), Mumbai – 400 067, Maharashtra, India
Type of charge	Book Debts Movable Property Floating Charge
Particular of charge holder	HDFC Bank, HDFC House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India E-Mail: RBBform8@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Supplemental Memorandum relating to Hypothecation Of Stocks, Book Debts and Machinery.
Date of instrument Creating the charge	15.09.2008
Amount secured by the charge	Rs.154.500 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment: On Demand Margin: Company shall at all times during the continuance of this security maintain a sufficient amount to provide the margin of security as may from time to time advised by the Bank. Extent and Operation of the charge: Hypothecation by way of First Charge on Company's Stocks, Book Debts and Machinery etc. to secure as a Continuing Security.
Short particulars of the property charged	Hypothecation first charge over the Stocks, Book Debts and Machinery of the Company, both present and future.
Date of latest modification prior to the present modification	13.09.2008
Particulars of the present modification	The bank having at the request of Company has agreed to sanctioned Additional Facility, thus the charge shall stand increased from Rs.137.000 millions to Rs.154.500 millions. (i.e. Cash Credit Rs.115.000 millions, Letter of Credit (Rs.15.000 millions), Bank Guarantee Rs.7.000 millions, Term Loan 1 Rs.25.000 millions, Term Loan 2 Rs.4.000 millions and Term Loan 3 Rs.3.500 millions)

Contingent Liabilities :

Particulars	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Bank Guarantee given	2.150	15.000

FIXED ASSETS:

• Factory Gala
• Plant and Machinery
• Electric Installation
• Loft
• Land
• Factory Building
• Computer System
• Fire Extinguisher
• Telephone Equipment
• Dies and Moulds
• Motor Car
• Motor Cycle
• Cycle
• Refrigerator
• Water Cooler
• Furniture and Fixture
• Windmill

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.47.80
UK Pound	1	Rs.75.16
Euro	1	Rs.65.11

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	3
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		34

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.