MIRA INFORM REPORT

Report Date :

01.06.2012

IDENTIFICATION DETAILS

Name :	VIJAYNEHA POLYMERS PRIVATE LIMITED
Registered Office :	Survey No.67, Mailardev Pally village, Rajendranagar, Ranga Reddy District, Hyderabad, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	22.07.2003
Com. Reg. No.:	01-041378
Capital Investment / Paid-up Capital :	Rs.18.651 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 varieties of plastic bags and allied products.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 678000
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

INFORMATION PARTED BY

Name :	Mr. Kumar
Designation :	Administrative Department
Contact No.:	91-40-24777659
Date :	30.05.2012

LOCATIONS

Registered Office :	Survey No.67, Mailardev Pally village, Rajendranagar, Ranga Reddy District, Hyderabad, Andhra Pradesh, India
Tel. No.:	91-40-24615259/24777659/24446906
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.:	01-40-24446902
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 15.09.2011

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	Date of cessation	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 :

Smt. 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

KEY EXECUTIVES

Name :	Mr. Kumar
Designation :	Administrative Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 15.09.2011

Names of Shareholders	No. of Shares
Shiv Kumar Gupta	810000
Chandra Bhaga	250000
Aruna Gupta	439997
Shiv Kumar Gupta – (HUF)	73000
Anju Gupta	3500
Manju Agarwal	3500
Pushpa Kanwar	12500
S. Kanwar	12500
Ajit Singh	22500
Umed Singh	20000
Rajeshwari Devi	22500
Mohiuddin Zuberi	30000
Zeenat Zuberi	30000
V.N. Distributors Private limited (India)	85000
Tara Sales Corporation (India)	50
Moallim Ali	3500
Zarina Fatima	3500
Prakash Mundada	3500
Shabho Mundada	3500
Nimisha Mundada	3500
Gopalal Goud	3500
Samata Goud	3000
Kesari Reddy	2500
Kesari Aruna	2500
Jogaya Mukku	2500
Satyawani Mukku	2500
Pawan Kumar Agarwal	3500
Gaurav Agarwal	2500
Amarchand Sethia	2500
Anand Sethia	2500
Ranjitha Sethia	2500
Jatan Devi Sethia	2500
Jagdamba Traders (India)	6
Kishore Agarwal	6
Pushpabhai Agarwal	6
Sarda Plastics (India)	5
TOTAL	1865070

Equity Share Break up (Percentage of Total Equity)

As on 15.09.2011

Category	Percentage
Bodies corporate	4.00
Directors or relatives of Directors	85.00
Other top fifty shareholders	11.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of 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
Terms :
Selling :	Cash and Credit
Purchasing :	L/C, Cash and Credit

GENERAL INFORMATION

Customers :

Manufacturer

No. of Employees :

Not Available

Bankers :

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

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans banks secured	80.351	72.298
Rupee term loans others secured	1.125	1.647
Working capital loans banks secured	328.920	100.842
Total	410.396	174.787
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Rupee term loans others unsecured	20.462	56.460
Total	20.462	56.460

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
Tel. No.:	040-65168900
Fax No.:	040-24758964
E-Mail :	mka_ca@rediffmail.com
PAN.:
Enterprises owned by the Directors and relatives :	Chandra plastic Industries Neha poly pack V.N. Distributions Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

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
1865070	Equity Share	Rs.10/- each	Rs.18.651 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		18.651	17.651	17.551
2] Share Application Money		28.000	5.000	10.015
3] Reserves & Surplus		122.875	87.710	52.091
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		169.526	110.361	79.657
LOAN FUNDS
1] Secured Loans		410.396	174.787	132.120
2] Unsecured Loans		20.462	56.460	53.304
TOTAL BORROWING		430.858	231.247	185.424
DEFERRED TAX LIABILITIES		20.533	17.996	11.269
TOTAL		620.917	359.604	276.350
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		169.932	176.615	127.386
Capital work-in-progress		57.604	4.725	5.037
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	199.280	138.896	104.428
	Sundry Debtors	282.360	108.951	66.202
	Cash & Bank Balances	21.510	13.170	11.998
	Other Current Assets	3.376	1.749	0.000
	Loans & Advances	99.865	16.220	23.406
Total Current Assets		606.391	278.986	206.034
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	192.050	86.395	52.292
	Other Current Liabilities	8.579	7.374	6.636
	Provisions	12.408	6.994	3.233
Total Current Liabilities		213.037	100.763	62.161
Net Current Assets		393.354	178.223	143.873
MISCELLANEOUS EXPENSES		0.027	0.041	0.054
TOTAL		620.917	359.604	276.350

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES		1451.530	1200.195	734.656
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		85.984	71.990	46.803
Less	FINANCIAL EXPENSES		29.050	23.592	14.337
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		56.934	48.398	32.446
Less/ Add	DEPRECIATION/ AMORTISATION		10.410	9.008	5.066
	PROFIT BEFORE TAX		46.524	39.390	27.400
Less	TAX		14.696	13.484	8.650
	PROFIT AFTER TAX		31.828	25.906	18.750
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		57.089	33.980	17.311
Less	APPROPRIATIONS
		Transfer to General Reserve	3.183	2.590	1.875
		Proposed Dividend	0.187	0.177	0.176
		Tax on Dividend	0.031	0.030	0.030
	BALANCE CARRIED TO THE B/S		85.516	57.089	33.980
	Earnings Per Share (Rs.)		17.07	14.68	10.68

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	3.21	3.28	3.73
Return on Total Assets (PBT/Total Assets}	(%)	5.99	8.66	8.22
Return on Investment (ROI) (PBT/Networth)		0.24	0.34	0.34
Debt Equity Ratio (Total Liability/Networth)		3.80	3.00	3.11
Current Ratio (Current Asset/Current Liability)		2.85	2.77	3.31

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1. Year of Establishment	Yes
2. Locality of the firm	Yes
3. Constructions 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	Yes
10. Designation of contact person	Yes
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	Yes
20. Export / Import details	No
21. Market information	------
22. Litigations that the firm / promoter involved	------
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

PERFORMANCE AND OPERATIONS

The Company’s gross turnover of Rs.1451.530 millions during the year is 20.94% higher compared to previous year turnover of Rs.1200.195 millions and the net profit before Tax is Rs.46.524 millions as against 39.390 millions in the previous year, recording an increase of 18.11 %. Thus the Company continues to maintain its growth and performance track

FUTURE OUTLOOK

Company’s agency business viz the Del –crede cum consignment stockist of M/s Indian Oil Corporation for its Polyethylene and Poly propylene in Hyderabad is gaining momentum and would be instrumental for a deeper market penetration in the years ahead .Government restriction on packing material below 40 microns would increase the sales volumes. More investments are proposed in multi-layer rolls division and flexible packaging divisions which would further boost growth, value addition and enhance the shareholder’s wealth.

FORM 8

Corporate identity number of the company	U25209AP2003PTC041378
Name of the company	VIJAYNEHA POLYMERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Survey No.67,Mailardev Pally Illage Rajendranagar Ranga Reddy Andhra Pradesh India Email: hareesh@vijayneha.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10233760
Type of charge	Book Debts Movable Property
Particular of charge holder	ICICI Bank Limited, Land Mark Race Course Circle, Alkapuri, Baroda – 390015, Gujarat, India Email : ankur.parwal@icicibank.com
Nature of instrument creating charge	Deed of Hypothecation dated 8th January, 2011 for working capital limits of Rs.260.000 millions and term loan of Rs.30.000 millions including capex LC of Rs.15.000 millions as a sub limit of Term Loan attached herewith
Date of instrument Creating the charge	08.01.2011
Amount secured by the charge	Rs.290.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC-IBASE+3.75 %( Presently 12% p.a), WCDL-IBASE + 6months term premia + 2.70% (presently 11.75% p.a), LC1, LC2 and Capex LC Comm 1%. Term Loan : IBase+3.95+6m Term Premia Terms of Repayment Validity 12 months. Payable on demand. Margin CC and WCDL 25%against on all components of inventory,25% on Book debts with cover period of 90days , 10% cash margin on LC1 and LC2. Capex LC : 33% Extent and Operation of the charge Pari passu first charge by hypothecation of Company's entire current assets and Pari passu second charge on movable fixed assets of Rs.150.000 millions ( net fixed assets as on 31/03/2010) with other banks in multiple banking arrangement for working capital limits. Pari passu first charge on movable fixed assets of Rs 150.0 million (net fixed assets as on 31/03/2010) and Pari passu second charge by hypothecation of Company's entire current assets for Term Loan facilities.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Pari passu first charge by hypothecation of Company's entire current assets and Pari passu second charge on movable fixed assets of Rs.150.000 millions ( net fixed assets as on 31/03/2010) for WC Limits Pari passu first charge on movable fixed assets of Rs150.000 million (net fixed assets as on 31/03/2010 ) and Pari passu second charge by hypothecation of Company's entire current assets for TL Limits
Particulars of the present modification	Charge on Current Assets, Moveable Fixed Assets as per attached DOH for the Enhanced limits from Rs.190.000 millions to Rs.290.000 millions

FIXED ASSETS

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

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. Vijayneha 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.

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. 56.42
UK Pound	1	Rs. 87.37
Euro	1	Rs. 69.95

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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		47

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.