MIRA INFORM REPORT

Report Date :

06.02.2012

IDENTIFICATION DETAILS

Name :	CAP AND SEAL (INDORE) PRIVATE LIMITED
Registered Office :	Plot No. 5, Flat No. 302, 3^rd Floor, Shree Balaji Hights, Rajgarh Kothi, Manoramaganj, Indore – 452 002, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	24.04.1998
Com. Reg. No.:	10-12795
Capital Investment / Paid-up Capital :	Rs.4.000 millions
CIN No.: [Company Identification No.]	U25202MP1998PTC012795
TAN No.: [Tax Deduction & Collection Account No.]	BPLC00773D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Aluminium Pilfer Proof Caps
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 83000
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 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.

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

LOCATIONS

Registered / Corporate Office :	Plot No. 5, Flat No. 302, 3^rd Floor, Shree Balaji Hights, Rajgarh Kothi, Manoramaganj, Indore – 452 002, Madhya Pradesh, India
Tel. No.:	91-731-4085400 / 2700346 / 4039501 / 4039512
Fax No.:	91-731-2707501 / 4085400
E-Mail :	capandseal@capandseal.com
Website :	http://www.capandseal.com
Factory / Warehouse :	Plot No. 184, Road No. 8, Sector- I , Pithampur District, Dhar – 454 775, Madhya Pradesh, India

DIRECTORS

As on 30.09.2011

Name :	Mr. Nishith Choudhary
Designation :	Director
Address :	H-1, Ratlam Kothi, Indore – 452 001, Madhya Pradesh, India
Date of Birth/Age :	25.04.1959
Date of Appointment :	24.04.1998
DIN No.:	00315913

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	U25202MP1998PTC012795	Cap and Seal (Indore) Private Limited	Director	24-04-98	24-04-98	Active	NO
2	U85120MP1982PTC001971	Shivano Organics Private Limited	Director	01-04-09	01-04-09	Active	NO

Name :	Mrs. Neeta Choudhary
Designation :	Director
Address :	H-1, Ratlam Kothi, Indore – 452 001, Madhya Pradesh, India
Date of Birth/Age :	03.05.1968
Date of Appointment :	24.04.1998
DIN No.:	00315907

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	U25202MP1998PTC012795	Cap and Seal (Indore) Private Limited	Director	24-04-98	24-04-98	Active	NO
2	U05110MP2003PTC016232	KNC Intrade Private Limited	Director	24-11-03	24-11-03	Active	NO
3	U85120MP1982PTC001971	Shivano Organics Private Limited	Director	01-04-09	01-04-09	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Nishith Choudhary	157500
Neeta Choudhary	99100
Ras Kuwar Chaudhary	110600
Shweta Jain	100
Monica Jain	100
Lalit Jain	32600
Total	400000

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Aluminium Pilfer Proof Caps
Product Description :	Bottle Closure Caps

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· State Bank of India

· State Bank of Indore

Khandelwal Chambers, Mhow-Neemuch Road, Pithampur – 454 775, Madhya Pradesh, India

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Cash Credit Limit from State Bank of India (Secured by hypothecation of stock of Raw material, Work-in-Progress and finished goods and personal guarantee by the directors)	0.000	2.130
Export Packing Limit from State Bank of India (Secured against Raw materials for Export, Export Bill, Letter of credit and personal guarantee by the directors)	27.245	22.248
State Bank of Indore, Term Loan (Secured against plant and machinery and personal guarantee by the directors)	3.461	4.617
Total	30.706	28.995

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
From Directors and Share Holders	0.847	0.090
Total	0.847	0.090

Banking Relations :	--
Auditors :
Name :	Swapnil Jain and Company Chartered Accountants
Address :	215, Chetak Marg Annex, 12/2, R.N.T. Marg, Indore – 452 002, Madhya Pradesh, India
PAN No.:	ABXPJ4607L
Related Parties :	· Indore Metal Printers · KNC Intrade Private Limited · Shivano Organics Private Limited

CAPITAL STRUCTURE

As on 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/- each	Rs.4.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/- each	Rs.4.000 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		4.000	4.000	4.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		16.708	12.586	9.378
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		20.708	16.586	13.378
LOAN FUNDS
1] Secured Loans		30.706	28.995	38.343
2] Unsecured Loans		0.847	0.090	1.338
TOTAL BORROWING		31.553	29.085	39.681
DEFERRED TAX LIABILITIES		1.985	1.751	1.576
TOTAL		54.246	47.422	54.635
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.936	13.784	14.338
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	1.500	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	20.865	13.474	21.266
	Sundry Debtors	24.422	16.195	16.472
	Cash & Bank Balances	9.349	1.571	5.913
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	9.846	9.540	5.608
Total Current Assets		64.482	40.780	49.259
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.140	6.532	6.907
	Other Current Liabilities	3.032	2.110	2.055
	Provisions
Total Current Liabilities		27.172	8.642	8.962
Net Current Assets		37.310	32.138	40.297
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		54.246	47.422	54.635

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	115.813	86.365	103.767
		Other Income	0.948	1.500	1.619
		Stock Destroyed in flood	0.000	1.310	0.000
		TOTAL (A)	116.761	89.175	105.386
Less	EXPENSES
		Cost of material consumed	79.982	55.222	67.776
		Manufacturing and other Direct Expenditure	17.156	12.014	18.083
		Selling and Allowances and Benefit	2.034	2.091	1.481
		Administrative and Other Expenses	3.507	2.340	2.624
		Selling and Distribution Expenses	6.264	4.073	5.767
		Loss due to flood	0.000	0.711	0.000
		Increase / Decrease in Stock of Finished / Semi Finished Goods	(1.813)	4.703	(0.024)
		TOTAL (B)	107.130	81.154	95.707
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		9.631	8.021	9.679
Less	INTEREST (D)		2.534	2.445	4.251
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		7.097	5.576	5.428
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.933	0.862	0.736
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		6.164	4.714	4.692
Less	TAX (H)		2.042	1.505	1.540
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		4.122	3.209	3.152
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.574	9.365	6.213
	BALANCE CARRIED TO THE B/S		16.696	12.574	9.365
	EARNINGS IN FOREIGN CURRENCY		97.434	71.570	94.792
	Earnings Per Share (Rs.)		10.31	8.02	7.88

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.53	3.60	2.99
Net Profit Margin (PBT/Sales)	(%)	5.32	5.46	4.52
Return on Total Assets (PBT/Total Assets}	(%)	7.57	8.64	7.38
Return on Investment (ROI) (PBT/Networth)		0.30	0.28	0.35
Debt Equity Ratio (Total Liability/Networth)		2.84	2.27	3.64
Current Ratio (Current Asset/Current Liability)		2.37	4.72	5.50

LOCAL AGENCY FURTHER INFORMATION

NOTE

The Registered Office of the company has been shifted from 57/5, Utsav Bhawan, Shraddhanand Marg, Indore, Madhya Pradesh, India to the present address w.e.f. 01.04.2010.

FORM 8

Corporate identity number of the company	U25202MP1998PTC012795
Name of the company	CAP AND SEAL (INDORE) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	57/5, Utsav Bhawan, Shraddhanand Marg, Indore, Madhya Pradesh, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10040209
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Others o Raw Materials, Stock in progress, Finished Goods
Particular of charge holder	State Bank of Indore Khandelwal Chambers, Mhow-Neemuch Road, Pithampur – 454 775, Madhya Pradesh, India E-Mail : sbn3201@sbindore.co.in
Nature of instrument creating charge	- Supplemental Agreement of Hypothecation of Goods and Assets for increase in the Overall Limit - Letter Regarding the Grant of Individual Limits within the Overall Limit - Deed for extension of existing mortgage on immovable assets. Register Entry No. 12/98 of 2008
Date of instrument Creating the charge	23.07.2008
Amount secured by the charge	Rs.65.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest - At par with BPLR, i.e. 13.75% p.a./ As per Bank Instructions for CC Hypothecation . As per Bank instructions for FUBD/FDBP Limit - As prescribed by the Bank from time to time for Bank Guarantee Limit. Terms of Repayment Cash Credit Limit is repayable on demand, subject to renewal within a period of 12 months Margin Raw material: 25% Stock in Process: 30% Finished Goods: 35% EPC: 10% Book Debts and receivables: 40% LC/Bank Guarantee: 20% Extent and Operation of the charge Total limit of Rs.65.500 millions divided into - CC Hypothecation : Rs.40.000 millions (within that Rs.36.000 millions against EPC, Rs.4.000 millions against Book Debts, FUBD/ FDBP Limit of Rs.20.000 millions) - Letter of Credit: Rs.15.000 millions -Term Loan (Existing) Rs.8.000 millions -Bank Guarantee: Rs.2.500 millions Others Extension of Equitable Mortgage for security upto Rs.65.500 millions. - Plot No.741/B(admeasuring 1500 sq.ft.) at Tulsi Nagar, Indore belongs to Shri Nishith Choudhary - Plot No.750/B(admeasuring 1500 sq.ft.) at Tulsi Nagar, Indore belongs to Mrs. Neeta Choudhary - House property at 57/5, Kalali Mohalla, Shradhanand Marg, Indore. belongs to Mrs. Raskuwarbai Choudhary Personal Guarantee of Shri Sanjay Choudhary, Mrs.Neeta Choudhary and Mrs. Raskuwar Choudhary
Short particulars of the property or asset(s) charged (including complete address and location of the property)	- First exclusive hypothecation charge over entire chargeable current assets of the company. - Equitable Mortgage on the entire fixed assets of the Company and construction of building thereon situated at Land at Plot No.184, Sector A, Industrial Area, Pithampur admeasuring 29,000sq.ft. - Charge by way of the Plant and Machinery of the Company. - Demand and Usance Bills tenure not exceeding 90 days drawn on foreign buyers.
Particulars of the present modification	The individual limit granted to the Company earlier for Rs.34.500 millions has been increased to Rs.655.00. Now the total credit facilities are divided as under: - CC Hypothecation : Rs.40.000 millions (within that Rs.36.000 millions against EPC, Rs.4.000 millions against Book Debts, FUBD/FDBP within CC Rs.20.000 millions) - Letter of Credit: Rs.15.000 millions -Term Loan (Existing) Rs.8.000 millions -Bank Guarantee: Rs.2.500 millions

FIXED ASSETS

· Leasehold Land

· House

· Site Development

· Factory Building

· Plant and Machineries

· Electrical Equipments and Installations

· Computers

· Furniture and Fixture

· Vehicles

· Office Equipments

WEB DETAILS

Profile

Subject is one of the Indian Aluminium Pilfer Proof Caps manufacturing and exports oriented company. From Liquor to Olive Oil, Wines to Pharmaceuticals our products cover them all. But their vision takes them beyond the dynamics of size or scale, they strive to excel in everything they do. Identified as an "EXPORT HOUSE" by the "Office of the Director General of Foreign Trade, Ministry of Commerce and Trade, Government of India", their strengths speak of more than just caps. Subject has come a long way since its inception with a track record that has not only resulted in a tremendous growth in their performance but also in customer base to realize more than 90% of its revenue through exports to Europe, Gulf, East and West Africa, South East Asia and Latin America Countries. Subject had a humble beginning in 1986 with an installed capacity of 40,000 caps per day. But over the years, the company has made judicious use of its assets to achieve tremendous growth. The current capacity is 2 million caps per day. Dedicated and well experienced manpower and a wide spread marketing network have enabled the company to carve a niche in the Aluminium Pilfer Proof Caps Industry today. The urge to follow International Standards to manufacture their products has led them to be recognized as an ISO 9001: 2008 Company certified by TUV SUD GROUP, GERMANY. Following the trends in the packaging industry, subject has expanded its product range to cover Plastic closures which find application in various areas of the food industry as well as the pharmaceutical industry. The product range currently contains closures with a diameter from 20 mm to 33.5 mm and a height from 15 mm to 60 mm. Their products are distinguished by outstanding and permanent quality which guarantees their use on high speed equipments. They focus on consumer's demands and offer solutions relying on their abundant experience acquired through working in various cultural environments.

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.48.96
UK Pound	1	Rs.77.47
Euro	1	Rs.64.40

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.