MIRA INFORM REPORT

Report Date :

24.07.2012

IDENTIFICATION DETAILS

Name :	IPC PACKAGING COMPANY PRIVATE LIMITED
Registered Office :	#20, Jigani Link Road, Bommasandra Jigani, Industrial Area, Hulimangala, Bangalore - 562106, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.05.2008
Com. Reg. No.:	08-046513
Capital Investment / Paid-up Capital :	Rs.9.655 millions
CIN No.: [Company Identification No.]	U21020KA2008PTC046513
TAN No.: [Tax Deduction & Collection Account No.]	BLRI103477F
PAN No.: [Permanent Account No.]	AABC18890E
Legal Form :	Private Limited Liability Company
Line of Business :	The company is engaged in the business of Manufacture and sale of a wide range of Woven Sacks and Fabrics Catering to Needs of cement, Animal feeds Manufacturing and other companies.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 680000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears loss in the current year recoded by the company. However, 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 cautions.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

EXTERNAL AGENCY RATING

Agency Name	Rating
CARE	BB

Rating Explanations

AAA (Highest Safety)	Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.
AA (High Safety)	Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
A (Adequate Safety)	Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.
BBB (Moderate Safety)	Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.
BB (Moderate Risk)	Instruments with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations.
B (High Risk)	Instruments with this rating are considered to have high risk of default regarding timely servicing of financial obligations.
C (Very High Risk)	Instruments with this rating are considered to have very high risk of default regarding timely servicing of financial obligations.
D (Default)	Instruments with this rating are in default or are expected to be in default soon.

LOCATIONS

Registered Office/ Factory :	#20, Jigani Link Road, Bommasandra Jigani, Industrial Area, Hulimangala, Bangalore - 562106, Karnataka, India
Tel. No.:	91-80-27839098 / 99
Fax No.:	91-80-27835311
E-Mail :	gmkauditors@gmail.com business@ipcpackaging.in sales@ipcpackging.net ipc_11@yahoo.co.in
Website :	http://www.ipcpackaging.in
Marketing Office :	#4909, 9^th Floor High Point IV, 45 Palace Road, Bangalore – 560001, Karnataka, India
Tel. No.:	91-80-22263540 / 22266608
Fax No.:	91-80-22280456

DIRECTORS

As on 30.09.2011

Name :

Mr. Lalchand Karamchand Chhabria

Designation :

Director

Address :

12, Gurukrupa, Cunningham Road, Bangalore – 560052, Karnataka, India

Date of Birth/Age :

18.10.1937

Date of Appointment :

21.05.2008

DIN No.:

02156546

Other directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U21020KA2008PTC046513	IPC PACKAGING COMPANY PRIVATE LIMITED	Director	21/05/2008	21/05/2008	-	Active	NO
2	U25200KA2010PTC054061	Global Techno Pack (India) Private Limited	Director	15/06/2010	15/06/2010	-	Active	NO

Name :

Mr. Nirmala Lalchand Chhabria

Designation :

Director

Address :

12, Gurukrupa, Cunningham Road, Bangalore – 560052, Karnataka, India

Date of Birth/Age :

28.02.1943

Date of Appointment :

21.05.2008

DIN No.:

02156561

Name :

Mr. Subhash Lalchand Chhabria

Designation :

Director

Address :

No.12, Gurukrupa, Cunningham Road, Vasanthnagar, High Ground, Bangalore - 560052, Karnataka, India

Date of Birth/Age :

10.06.1969

Date of Appointment :

21.05.2008

DIN No.:

02156529

Name :

Mr. Aashish Lalchand Chhabria

Designation :

Director

Address :

12, Gurukrupa, Cunningham Road, Bangalore – 560052, Karnataka, India

Date of Birth/Age :

16.03.1968

Date of Appointment :

21.05.2008

DIN No.:

02156576

Other directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U21020KA2008PTC046513	IPC PACKAGING COMPANY PRIVATE LIMITED	Director	21/05/2008	21/05/2008	-	Active	NO
2	U25200KA2010PTC054061	Global Techno Pack (India) Private Limited	Director	15/06/2010	15/06/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Lalchand Karamchand Chhabria	211285
Nirmala Lalchand Chhabria	163365
Aashish Lalchand Chhabria	293175
Subhash Lalchand Chhabria	293175
Neesha L Chhabria	1500
Sheetal A Chhabria	1500
Gitanjali S Chhabria	1500
Total	965500

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	The company is engaged in the business of Manufacture and sale of a wide range of Woven Sacks and Fabrics Catering to Needs of cement, Animal feeds Manufacturing and other companies.
Product:	· BOPP Laminated Woven Bags · PP Woven Sacks · Leno Bags · Box Bag · Pallet Covers · Tarpaulin Sheets · Flexible Intermediate Bulk Containers · HDPE Woven Fabric · Laminated HDPE Woven Fabric · HDPE Woven Bags and Sacks · Jumbo Bags

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Fabric and Woven Sack	MT	NA	12240	1153.78
Production Through Job Worker	Mts	NA	NA	149.40

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

State Bank of India, 26/A, Electronic City, Hosur Road, Bangalore - 560100, Karnataka, India

Facilities :

SECURED LOAN	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loan secured	285.647	309.717
Foreign Currency loan secured	2.554	0.000
Working capital Loan secured	280.469	0.000
Loan taken from fixed assets secured	1.411	0.617
Total	570.081	310.334
UNSECURED LOAN	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Working capital Loan unsecured	11.040	9.215
Loan director unsecured	29.393	0.000
Total	40.433	9.215

Banking Relations :	--
Auditors :
Name :	Girish Murthy and Kumar Chartered Accountant
Address :	4502, High Point IV, 45, Palace Road, Bangalore – 560001, Karnataka, India
PAN.:	ABYPK7150Q

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
965500	Equity Shares	Rs.10/- each	Rs.9.655 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		9.655	0.155	0.105
2] Share Application Money		0.000	148.478	90.258
3] Reserves & Surplus		161.457	13.397	4.636
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		171.112	162.030	94.999
LOAN FUNDS
1] Secured Loans		570. 081	310.334	186.568
2] Unsecured Loans		40.433	9.215	0.000
TOTAL BORROWING		610.514	319.549	186.568
DEFERRED TAX LIABILITIES		20.021	26.317	13.622
TOTAL		801.647	507.896	295.189
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		484.086	456.775	263.350
Capital work-in-progress		5.962	7.496	18.069
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	175.752	105.015	52.794
	Sundry Debtors	147.310	90.444	48.570
	Cash & Bank Balances	11.334	0.199	0.130
	Other Current Assets	70.862	51.034	26.838
	Loans & Advances	54.913	41.903	23.870
Total Current Assets		460.171	288.595	152.202
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	129.556	27.199	2.554
	Other Current Liabilities	7.833	202.797	127.367
	Provisions	11.183	14.974	8.511
Total Current Liabilities		148.572	244.970	138.432
Net Current Assets		311.599	43.625	13.770
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		801.647	507.896	295.189

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2010	31.03.2009
	SALES
		Income		675.714	269.923
		Other Income		54.654	15.663
		TOTAL	NA	730.368	285.586
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	NA	646.083	250.100
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION			84.285	35.486
Less	FINANCIAL EXPENSES			46.204	11.326
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION			38.081	24.160
Less/ Add	DEPRECIATION/ AMORTISATION			16.625	5.829
	PROFIT BEFORE TAX			21.456	18.331
Less	TAX		NA	12.695	13.695
	PROFIT AFTER TAX			8.761	4.636
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings		37.050	7.811
	TOTAL EARNINGS			37.050	7.811
	IMPORTS
		Raw Materials		33.486	0.000
		Capital Goods		0.462	66.726
		Consumables		0.987	0.090
	TOTAL IMPORTS			34.935	66.816
	Earnings Per Share (Rs.)			565.20	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	1.19	1.62
Net Profit Margin (PBT/Sales)	(%)	NA	3.17	6.79
Return on Total Assets (PBT/Total Assets}	(%)	NA	2.87	4.41
Return on Investment (ROI) (PBT/Networth)		NA	0.13	0.19
Debt Equity Ratio (Total Liability/Networth)		4.44	3.48	3.42
Current Ratio (Current Asset/Current Liability)		3.10	1.17	1.09

LOCAL AGENCY FURTHER INFORMATION

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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
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	No
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	--
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

Background

The Company was incorporated on May 21, 2008 by converting the erstwhile partnership firm India Packaging Corporation under Part IX of the Companies Act. 1956.

The Company is engaged in the business of manufacture and sale of a wide range of woven sacks and fabrics catering to needs of cement, animal feeds manufacturing and other companies. The principal source of revenue for the Company is from sale of woven sacks and fabrics

Bankers Charges Report as per Registry

Corporate identity number of the company	U21020KA2008PTC046513
Name of the company	IPC PACKAGING COMPANY PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	#20, Jigani Link Road, Bommasandra Jigani, Industrial Area, Hulimangala, Bangalore - 562106, Karnataka, India gmkauditors@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10187101
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	State Bank of India, 26/A, Electronic City, Hosur Road, Bangalore - 560100, Karnataka, India rjr.cs69@gmail.com
Nature of instrument creating charge	Memorandum of deposit for creation of charge for term loan / overall limit form c-9.
Date of instrument Creating the charge	15.06.2012
Amount secured by the charge	Rs. 767.900 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per existing terms of sanction. Terms of Repayment As per existing terms of sanction. Margin As per existing terms of sanction. Extent and Operation of the charge Exclusive first charge on the assets (specified in col no. 15) of the company and to the full extent. Others Cash Credit RS. 345.000 millions TL 3 RS. 11.000 millions TL 4 RS. 12.000 millions TL 5 RS. 22.900 millions TL 6 RS. 180.000 millions TL 7 RS. 104.500 millions TL 8 RS. 40.000 millions LC RS. 50.000 millions BG RS. 2.500 millions Total RS. 767.900 millions (TL 1 RS. 30.000 millions and TL 2 RS. 6.000 millions stands closed).
Short particulars of the property charged	Hypothecation of company's present and future movable fixed assets and current assets like stocks, raw materials, semi finished and finished goods, book debts, receivables, outstanding monies, bills, rights, stores, components, furniture and fittings; other movables, plant and machinery, vehicles etc., All that piece & parcel of Iand in Plot No. 20 and 169, bearing Sy No. 132, 243 & 244, Situated at Bommasandra-Jigani Link Road Industrial Area, Rajapura Village, Jigani Hobli, Anekal Tq, Bangalore, admeasuring 12191 sq. mtrs.
Particulars of the present modification	The amount secured by the charge stands reduced to Rs. 767.900 millions. All other terms and conditions remain unchanged.

FIXED ASSETS:

· Leasehold Land

· Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixture

· Office Equipment

· Vehicles

· Computer

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.55.76
UK Pound	1	Rs.86.80
Euro	1	Rs.67.43

INFORMATION DETAILS

Report Prepared by :

DPK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		27

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.