MIRA INFORM REPORT

Report Date :

28.09.2011

IDENTIFICATION DETAILS

Name :	VIJAYNEHA POLYMER PRIVATE LIMITED
Registered Office :	Survey No.67, Mailardev Pally village, Rajendranagar, Ranga Reddy District, Hyderabad, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	22.07.2003
Com. Reg. No.:	01-041378
Capital Investment / Paid-up Capital :	Rs.17.651 Millions
CIN No.: [Company Identification No.]	U25209AP2003PTC041378
TAN No.: [Tax Deduction & Collection Account No.]	HYDV02342E
PAN No.: [Permanent Account No.]	AABCV7309K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of a varieties of plastic bags and allied products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 440000
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 reported to be usually correct and as per commitments. The company can be considered normal for business 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 – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

LOCATIONS

Registered Office :	Survey No.67, Mailardev Pally village, Rajendranagar, Ranga Reddy District, Hyderabad, Andhra Pradesh, India
Tel. No.:	91-40-24615259/24777659
Fax No.:	91-40-24446902
E-Mail :	hareesh@vijayneha.com
Administrative Office :	15-7-476, Begum Bazar, Hyderabad-500012, Andhra Pradesh, India
Tel. No.:	91-40-24615259/24777659
Fax No.:	91-40-24446902
E-Mail :	admin@vijayneha.com
Factory :	8-3-332, Mailardevpally, Rajendra Nagar, Hyderabad-500005, Andhra Pradesh, India
Tel. No.:	91-40-24446906
Fax No.:	91-40-24446902
E-Mail :	info@vijayneha.com

DIRECTORS

(AS ON 06.08.2010)

Name :

Mr. Shiv Kumar Gupta

Designation :

Director

Address :

No.5, Ambience Fort, Attapur, Ranga Reddy, Hyderabad – 500064, Andhra Pradesh, India

Date of Birth/Age :

11.01.1975

Date of Appointment :

22.07.2003

Din No.:

00856522

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	U25209AP2003PTC041378	VIJAYNEHA POLYMERS PRIVATE LIMITED	Director	22-07-03	22-07-03	Active	NO
2	U31909AP1994PTC017075	V.N.DISTRIBUTIONS PRIVATE LIMITED	Director	10-09-03	10-09-03	Active	NO

Name :

Mrs. Chandra Bhaga

Designation :

Director

Address :

No.5, Ambience Fort, Attapur, Ranga Reddy, Hyderabad – 500064, Andhra Pradesh, India

Date of Birth/Age :

23.10.1949

Date of Appointment :

22.07.2003

Din No.:

01017032

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 06.08.2010)

Names of Shareholders	No. of Shares
Mr. Shiv Kumar Gupta	710000
Smt. Chandra Bhaga	250000
Smt. Aruna Gupta	439997
Shiv Kumar Gupta – (HUF)	73000
Smt. Anju Gupta	3500
Smt. Manju Agarwal	3500
Smt. Pushpa Kanwar	12500
Smt. S. Kanwar	12500
Mr. Ajit Singh	22500
Mr. Umed Singh	20000
Smt. Rajeshwari Devi	22500
Mr. Mohiuddin Zuberi	30000
Smt. Zeenat Zuberi	30000
V.N. Distributors Private Limited, India	85000
Tara Sales Corporation, India	50
Mr. Moallin Ali	3500
Smt. Zarina Fatima	3500
Mr. Prakash Mundada	3500
Smt. Shabha Mundada	3500
Smt. Nimisha Mundada	3500
Mr. Gopalal Goud	3500
Smt. Samata Goud	3000
Mr. Kesari Reddy	2500
Smt. Kesari Aruna	2500
Mr. Jogaya Mukku	2500
Smt. Satyawani Mukku	2500
Mr. Pawan Kumar Agarwal	3500
Mr. Gaurav Agarwal	2500
Mr. Amarchand Sethia	2500
Mr. Anand Sethia	2500
Smt. Ranjitha Sethia	2500
Smt. Jatan Devi Sethia	2500
Jagdamba Traders, India	6
Mr. Kishore Agarwal	6
Mr. Pushpabhai Agarwal	6
Sarda Plastics, India	5
Total	1765070

(AS ON 06.08.2010)

Category	Percentage
Bodies corporate	4.82
Directors or relatives of directors	83.85
Other top fifty shareholders	11.33
Total	100

BUSINESS DETAILS

Line of Business :	Manufacturer of a varieties of plastic bags and allied products.
Products :	Multilayer Films Laminated Rolls and pouches Carry Bags (T-Shirt Bags) Kirana Bags Poly Bags Liners Garbage Bags Bag on Roll Polypropylene Bags LD/LLDPE Bags
Brand Names :	SHIVA GOLD SHIVA RUBY SHIVA DIAMOND SHIVA SILVER JANATHA CITIZEN CHANDRA

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Carry Bags including multilayer and Laminates	M.T	11900	10701.22

GENERAL INFORMATION

Bankers :

Syndicate Bank, Afzal Gunj, Hyderabad – 500012, Andhra Pradesh, India

Facilities :

Secured loans :	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
Cash Credit from Syndicate Bank	100.842	84.307
Term Loans from Syndicate Bank	72.298	47.813
Car Loan A/C	1.647	0.000
Total	174.787	132.120
Unsecured Loans:
Security deposits from Customers	5.913	5.000
Inter Corporate Deposit	32.500	29.000
Other Unsecured Loans (From Directors and Relatives of Directors)	18.047	19.304
Total	56.460	53.304

Banking Relations :	--
Auditors :
Name :	M.K.A. Associates Chartered Accountant
Address :	No.7, 4-1-969/7, Surabhi Shradha Ahuja Estate Abids, Hyderabad – 500001, India
Email :	mka_ca@rediffmail.com
Tel No. :	040-65168900
Fax No. :	040-24758964

CAPITAL STRUCTURE

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
2500000	Equity Share	Rs.10/- each	Rs. 25.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1765070	Equity Share	Rs.10/- each	Rs.17.651 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		17.651	17.551	17.551
2] Share Application Money		5.000	10.015	0.000
3] Reserves & Surplus		87.710	52.091	33.618
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		110.361	79.657	51.169
LOAN FUNDS
1] Secured Loans		174.787	132.120	93.852
2] Unsecured Loans		56.460	53.304	43.677
TOTAL BORROWING		231.247	185.424	137.529
DEFERRED TAX LIABILITIES		17.996	11.269	5.619
TOTAL		359.604	276.350	194.317
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		176.615	127.386	54.033
Capital work-in-progress		4.725	5.037	18.403
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	138.896	104.428	99.788
	Sundry Debtors	108.951	66.202	23.752
	Cash & Bank Balances	13.170	11.998	3.926
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	17.969	23.406	36.571
Total Current Assets		278.986	206.034	164.037
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	86.395	52.292	35.824
	Other Current Liabilities	7.374	6.636	4.105
	Provisions	6.994	3.233	2.295
Total Current Liabilities		100.763	62.161	42.224
Net Current Assets		178.223	143.873	121.813
MISCELLANEOUS EXPENSES		0.041	0.054	0.068
TOTAL		359.604	276.350	194.317

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	1200.195	734.656	521.964
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		71.990	46.803	25.198
Less	FINANCIAL EXPENSES		23.592	14.337	9.095
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		48.398	32.446	16.103
Less/ Add	DEPRECIATION/ AMORTISATION		9.008	5.066	2.753
	PROFIT BEFORE TAX		39.390	27.400	13.350
Less	TAX		13.484	8.650	4.311
	PROFIT AFTER TAX		25.906	18.750	9.039
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		33.980	17.311	9.381
Less	APPROPRIATIONS
		Transfer to General Reserve	2.590	1.875	0.903
		Dividend	0.177	0.176	0.176
		Tax on Dividend	0.030	0.030	0.030
	BALANCE CARRIED TO THE B/S		57.089	33.980	17.311
	EARNINGS IN FOREIGN CURRENCY		NA	7.007	NA
	IMPORTS
		Raw Materials	541.172	196.541	NA
		Spares & Components	NIL	0.144	NA
		Capital Goods	23.845	21.515	NA
	TOTAL IMPORTS		565.017	218.200	NA
	Earnings Per Share (Rs.)		14.68	10.68	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
Net Profit Margin (PBT/Sales)	(%)	3.28	3.73	2.56
Return on Total Assets (PBT/Total Assets}	(%)	8.66	8.22	6.12
Return on Investment (ROI) (PBT/Networth)		0.34	0.34	0.26
Debt Equity Ratio (Total Liability/Networth)		3.00	3.11	3.51
Current Ratio (Current Asset/Current Liability)		2.77	3.31	3.88

LOCAL AGENCY FURTHER INFORMATION

Performance and Operations:

The company has achieved a gross turnover of Rs.1200.195 Millions during the year being 63.40% higher than the previous year turnover of Rs. 734.700 Millions and the net profit before tax is Rs.39.390 Millions as against 27.400 Millions in the previous year, recording an increase of 43.75%. Thus the company has excelled as compared to earlier year and maintained its consistent growth and performance track.

Company’s multi layer and laminated products had provided much versatility to its operations meeting the diverse and evolving customer needs.

Bankers Charges Report as per Registry

This form is for	Creation of charge
Charge identification number of the modified
Corporate identity number of the company	U25209AP2003PTC041378
Name of the company
Address of the registered office or of the principal place of business in India of the company	SURVEY NO.67,MAILARDEV PALLY VILLAGE RAJENDRANAGAR RANGA REDDY DIST. A.P. Andhra Pradesh INDIA
Type of charge	Book Debts
Particular of charge holder	Nationalized bank
Nature of description of the instrument creating or modifying the charge	Agreement of loan -cum-hypothecation date 02/08/2010 for cash credit supply chain finance limit of 170 Millions secured against hypothecation of receivables for which invoices have been raised on the customers and bank guarantee limit of Rs 55.000 Millions aggregating Rs 225.000 Millions.
Date of instrument Creating the charge	02/08/2010
Amount secured by the charge	Rs. 225.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest : 1%below state bank advance rate currently at 11.75% with a minimum of 10.75% pa on daily products with monthly rests. Terms of Repayment : Validity 12 months. Margin : Nil margin on domestic receivables with cover period of 45 days and 10% margin money deposit on bank guarantee. Extent and Operation of the charge : Receivables for which invoices have been raised shall stand hypothecated to the bank by way of first charge as security for the due repayment and discharge by the borrower to the bank on demand of all monies at any time. Payable in respect of the facilities Others :
Short particulars of the property charged	Domestic receivables for which invoices have been raised under supply chain arrangement.

WEBSITE DETAILS:

PROFILE:

Subject one of the fastest growing companies in the Indian packaging industry. Subject recorded an annual compounded growth rate of 35% over the last five years by crossing many a milestones. Subject during these years expanded in to new markets and consolidated its position with a wide range of products. It has now a customer base of over 3000. Addition of latest manufacturing facilities embracing advanced technologies has been the hallmark to in the ever changing packaging market. The company has an installed extrusion capacity of over 15000 Metric Tonnes per annum.

The company is led by the visionary Shri S.K. Gupta. His modern management style transformed the company into a professional and vibrant organization. Subject has pioneered plastic film processing and printing technology over the years to serve the market demands of the major brands and companies in India and abroad. Subject has developed a large customer base with the top 10 customers accounting for less than 35 per cent of the total sales over the past three years.

Subject banks on its team and partners for growth and enhanced customer satisfaction. All operations are handled by veteran Mr. M.G. Thobhani, who is having more than three decades of experience both in India and abroad in extrusion of polymers. The finance operations are controlled by experienced Chartered Accountant.

Divisions:

HM HDPE - Division

More than 60 Extruders, 75 Cutting Machines work round-the-clock, producing more than 1100 MT of plastic every month to be used as heavy duty liners for Industrial Applications and various domestic utilities. Plans have been drawn out to enhance capacities to 2000 MT by the end of 2010.

Polypropylene Division

High clarity polypropylene bags of manufactured by Subject has carved a niche in the highly competitive polypropylene Market. With 15 extruders producing more than 200 MT per month, Subject is now on among the top polypropylene bags producers.

Multi-Layer - Extrusion

In the area of multi-layer extrusion Subject boasts of highly advanced fully automatic Multi-Layer Blown Film Extrusion plant with a production capacity of 2100 MT per year.

The in-house laboratory has provided its customers with highest quality standards and most economical and innovative Packaging solutions for specific packaging needs. Subject has also specialized in producing special films for Laminations for critical applications, supplying to all most all the converters in and around Hyderabad.

Flexible Packaging:

The booming economy which unleashed the retail boom made Subject to expand its manufacturing facilities and incorporating state-of-the-art technologies to meet the demands of flexible packaging solutions.

Recycle division

For recovery of the scrap generated during the process, Subject has installed most modern high capacity Recycle plant, imported from Taiwan.

Fixed Assets:

• Factory Building
• Labour Quarters
• Plant and Machinery
• Furniture and Fixture
• Office Equipments
• Vehicle (2 Wheeler)
• Vehicle (4 Wheeler)
• Computers

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.49.17
UK Pound	1	Rs.76.65
Euro	1	Rs.66.63

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.