MIRA INFORM REPORT

Report Date :

01.08.2012

IDENTIFICATION DETAILS

Name :	FIBRE FOILS LIMITED
Registered Office :	Plot No. A 6 Street No. 5, MIDC, Andheri (East), Mumbai – 400 093, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	09.10.1968
Com. Reg. No.:	11-14111
Capital Investment / Paid-up Capital :	Rs.61.379 Millions
CIN No.: [Company Identification No.]	U21010MH1968PLC14111
Legal Form :	A closely held Public Limited Liability Company
Line of Business :	Manufacturer of Paper Cores and Tubes, Composite, Fibre Drums Laminated Composite Containers and POY Tubes
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 1396496
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company and part of Sheron Group Company is having satisfactory track. There is a dip in the profitability of the company. However, trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered 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.

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED BY

Management Non co-operative (Name not disclosed)

LOCATIONS

Registered Office :	Plot No. A 6 Street No. 5, MIDC Road, Andheri (East), Mumbai – 400 093, Maharashtra, India
Tel. No.:	91-22-28326228 / 2832 8609
Fax No.:	91-22-28372145
E-Mail :	shetron@vsnl.com
Website :	www.shetrongroup.com
Factory :	Khopoli Near Mumbai, Village Dheku, Off Khopoli-Pen Road., Taluka: Khalapur, Raigad-410 203, India
Tel. No.:	952192 - 263408 / 263410 / 268930
Fax No.:	952192 – 268619

DIRECTORS

AS ON 28.09.2011

Name :	Mr. Diwakar Sanku Shetty
Designation :	Director
Address :	Divya Dr. R S Jain Marg, Gandhirram Road, Juhu , Mumbai – 400 049, Maharashtra, India
Date of Birth/Age :	03.06.1943
Date of Appointment :	09.10.1968
Name :	Mr. Praveen Vittal Mally
Designation :	Director
Address :	Vionna Building, Flat No.5, Plot No.12, JVPD Scheme, Juhu, Mumbai- 4000493Yashoda
Date of Birth/Age :	05.01.1966
Date of Appointment :	01.08.1998
Name :	Mrs. Yashoda Diwakar Shetty
Designation :	Director
Address :	Divya Dr. R S Jain Marg, Gandhirram Road, Juhu , Mumbai – 400 049, Maharashtra, India
Date of Birth/Age :	11.07.1951
Date of Appointment :	15.07.1977
Name :	Mr. Daksharaj Divakar Shetty
Designation :	Director
Address :	Divya Dr. R S Jain Marg, Gandhirram Road, Juhu, Mumbai – 400 049, Maharashtra, India
Date of Birth/Age :	06.11.1977
Date of Appointment :	10.05.2004

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 28.09.2011

Names of Shareholders	No. of Shares
Diwakar Sanku Shetty	63717
Yashoda Diwakar Shetty	61993
Daksharaj Divakar Shetty	41386
Karunya Shetty	400
Konjal Machines Private Limited, Mumbai	60060
Shetron Enterprises Private Limited, Mumbai	164614
N S Shetty	200
Midwest Services Limited, UAE	125000
Praveen Mally	400
Raksha Mally	46752
Diya Mally	350
Riya Mally	350
Niksha Nayak	47404
Kartik Nayak	400
Krishang Nayak	365
Banika Nayak	400
Total	613791

AS ON 28.09.2011

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	21.00
Directors or relatives of Directors	43.00
Other top fifty shareholders	36.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Paper Cores and Tubes, Composite, Fibre Drums Laminated Composite Containers and POY Tubes

Products:

Item Code No.	Product Description
09020484	Laminated Composite Containers
028060145	Special Tubes
0208060237	Paper Drums

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Paper Containers and Drums	In Million Nos.	26.29	19.16
Paper Tubes and Cores	In Million Nos.	6.72	6.60

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Union Bank of India, Andheri (East) Branch, Mayani Manor, Sir, M.V.Road, Andheri (East),, Mumbai - 400069, Maharashtra, India

Facilities :

SECURED LOAN	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Rupee term loans banks secured	144.875	48.998
Rupee term loans others secured	13.090	57.969
Loans taken for vehicles secured	0.220	0.737
Interest accrued due debentures secured	0.000	0.313
TOTAL	158.185	108.017
UNSECURED LOAN	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Deferred sales tax loan unsecured	22.722	26.826
Other debt unsecured	1.400	5.594
TOTAL	24.122	32.420

Financial institution:

Industrial Finance Corporation of India, Bank of Baroda Building, Sansad Marg, New Delhi - 110001, Delhi, India

Banking Relations :	--
Auditors :
Name :	B.M.Chaturvedi and Company Chartered Accountant
Address :	32, Jolly Maker Chambers II, Nariman Point, Mumbai – 400021, Maharashtra, India
Associates:	· Shetron Limited · Sansha Systems Limited · Shetron Enterprises Private Limited · Konjal Machines Private Limited · Bunts Properties Private Limited · Fibre Boards Limited

CAPITAL STRUCTURE

AS ON 28.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
615000	Equity Shares	Rs.100/- each	Rs.61.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
613791	Equity Shares	Rs.100/- each	Rs.61.379 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		61.379	61.379	60.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		287.745	284.702	303.551
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		349.124	346.081	363.551
LOAN FUNDS
1] Secured Loans		158.185	108.017	86.903
2] Unsecured Loans		24.122	32.420	38.759
TOTAL BORROWING		182.307	140.437	125.662
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		531.431	486.518	489.213
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		385.697	380.446	406.911
Capital work-in-progress		0.000	6.690	5.396
INVESTMENT		1.065	0.965	0.965
DEFERREX TAX ASSETS		0.023	0.023	0.023
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	84.007	63.294	66.610
	Sundry Debtors	68.177	7.184	38.614
	Cash & Bank Balances	12.937	67.861	5.852
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	19.449	14.083	20.896
Total Current Assets		184.570	152.422	131.972
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.516	36.290	29.723
	Other Current Liabilities	22.627	14.479	25.157
	Provisions	1.781	3.259	1.174
Total Current Liabilities		39.924	54.028	56.054
Net Current Assets		144.646	98.394	75.918
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		531.431	486.518	489.213

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	456.529	342.201	288.590
		Other Income	10.973	11.385	8.349
		TOTAL (A)	467.502	353.586	296.939
Less	EXPENSES
		Consumption materials changes inventories	294.715	215.582	169.198
		Manufacturing service costs	50.111	34.313	0.000
		Employee related expenses	27.426	23.349	21.334
		Administrative selling other expenses	58.163	40.570	71.673
		Increased / (Decreased) In Stock	0.000	0.000	(0.289)
		TOTAL (B)	430.415	313.814	261.916
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		37.087	39.772	35.023
Less	FINANCIAL EXPENSES (D)		15.997	12.789	12.367
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		21.090	26.983	22.666
Less/ Add	DEPRECIATION/ AMORTISATION (F)		12.273	11.209	10.973
	PROFIT BEFORE TAX (E-F) (G)		8.817	15.774	11.683
Less	TAX (I)		1.782	2.938	2.006
	PROFIT AFTER TAX (G-I) (J)		7.035	12.836	9.677
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		55.280	42.446	32.769
	BALANCE CARRIED TO THE B/S		62.315	55.280	42.446
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	135.938	49.350	86.898
	TOTAL EARNINGS		135.938	49.350	86.898
	IMPORTS
		Raw Materials	72.715	37.605	46.142
	TOTAL IMPORTS		72.715	37.605	46.142
	Earnings Per Share (Rs.)		11.46	20.91	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.50	3.63	3.26
Net Profit Margin (PBT/Sales)	(%)	1.93	4.61	4.05
Return on Total Assets (PBT/Total Assets}	(%)	1.55	2.96	2.17
Return on Investment (ROI) (PBT/Networth)		0.03	0.05	0.03
Debt Equity Ratio (Total Liability/Networth)		0.64	0.56	0.50
Current Ratio (Current Asset/Current Liability)		4.62	2.82	2.35

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

PARTICULARS	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Sundry Creditors
Creditors due small micro enterprises	0.000	0.000	0.000
Creditors due others	15.516	36.290	29.723

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	---------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	No
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Passport No of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No

OPERATIONAL PERFORMANCE :

The Company achieved Net Sales Turnover of Rs. 423.684 Millions against the previous year turnover of Rs. 319.488 Millions, showing an increase of 32% in sales over the previous year. The profit after tax was Rs. 7.035 Millions compared to Rs. 12.836 Millions in the previous year.

Major factor that contributed to lower profitability for the year, as compared to the previous year, were higher Export sales in the new market. They achieved Export sales of Rs. 135.938 Millions against previous year Exports of Rs. 49.350 Millions. They have entered the new market during the year and offered competitive prices to establish their selves in the new market. Now, since they have proved their selves with quality products and service, they are able to correct the prices during the current year and for future business.

BUSINESS PROSPECTS :

The outlook for the packaging industry is very positive. However, on the profitability front, the overall increasing trend in input costs poses challenge to protect the profit margin in the current financial year.

The economic scenario being very turbulent worldwide, it will have a direct impact on their Export business. They do not foresee any domestic turbulation. They are actively looking at growth through both organic and inorganic ventures. They are also looking to diversiy their product portfolios to overcome difficult market scenarios.

CONTINGENT LIABILITIES:

Contingent liabilities not provided for in the accounts as on 31st March 2011 consists of:

i) Outstanding letter of credit issued by banks Rs.22.818 Millions (Rs.17.287 Millions) and Guarantee issued by Banks Rs. 0.313 Million (Rs.0.100 Million),

ii) Corporate payment Guarantee in favour of supplier of raw material to its Group Company M/s Shetron Sobemi Europe N.V.for not exceeding Euro 300,000.

iii) Excise Duty claimed by the Department is Rs. 2.324 Millions against which the Company has gone on Appeal and decision is awaited.

Form 8:

Corporate identity number of the company	U21010MH1968PLC014111
Name of the company	FIBRE FOILS LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No A 6street No 5 M I D C, Andheri E, Mumbai – 400093, Maharashtra, India
This form is for	Creation of charge Modification of charge
Type of charge	Book Debts Immovable Property Movable Property Floating Charge Others
Particular of charge holder	The Cosmos Co-op Bank Limited, Vile Parle Branch, Nehru Road, Vile Parle East, Mumbai – 400057, Maharashtra, India
Nature of instrument creating charge	Composite Deed of Mortgage and Hypothecation for creation of further / additional charge
Date of instrument Creating the charge	16.06.2011
Amount secured by the charge	Rs.253.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash credit: 12% p.a or at such rate as maybe fixed by bank from time to time Terms of Repayment Cash credit and L/C : Repayable on demand/ review within 12 months Margin Cash credit & term loan:25% in bank's favour L/C :15% in bank's favour Extent and Operation of the charge Cash credit: Rs 80.000 Millions ( additional Rs 60.000 Millions) Term loan I: Rs 17.000 Millions (existing) Term Loan II: Rs 47.400 Millions (existing) Term loan III: Rs 85.600 Millions (existing) L/C: Rs 23.000 Millions (new) Others Due to size constraint page no 1- 15 of the agmt is filed with this form, balance agreement is filed vide form no 62
Short particulars of the property charged	Mortgage of all those pieces and parcels of freehold NA land bearing gut no 182 ad comprised no 182(old sno ) 11/2, 12/2, 12/3 25K R 6PP S no 13/1 60R 2P and sno 11/1 P s no 11/3 R no 12/4 , 49 R 8 P situated at village Dheku situated at village Dheku within Industrial Zone within Registration District and sub district of Raigad and within limits of Raigad Zilla Parishad. Together with the structure constructed/ to be constructed thereon , furniture , fixtures, plant and machineries attached to the earth permanently fastened to anything attached to the earth more particularly described Hypothecation of stock, bookdebts, plant and machinery situated at Khopoli factory, plant and machinery situated at Banglore factory, hypothecation of plant and machinery situated at Haryana factory
Particulars of the present modification	Cash credit limit enhanced from Rs 20.000 Millions to Rs.80.000 Millions and new L/C facility of Rs 23.000 Millions. Overall limit enhanced to Rs 253.000 Millions ((Cash credit: Rs 80.000 Millions Term loan I: Rs 17.000 Millions Term Loan II:Rs 47.400 Millions Term loan III: Rs 85.600 Millions L/C: Rs 23.000 Millions)

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.55.81
UK Pound	1	Rs.87.67
Euro	1	Rs.68.45

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		53

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.