MIRA INFORM REPORT

Report Date :

06.06.2012

IDENTIFICATION DETAILS

Name :	FLEX ALLOYS PRIVATE LIMITED
Registered Office :	228 A, Chittaranjan Avenue, P S Jorasanko, Kolkata-700006, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.02.1994
Com. Reg. No.:	21-061940
Capital Investment / Paid-up Capital :	Rs. 4.474 Millions
CIN No.: [Company Identification No.]	U27109WB1994PTC061940
TAN No.: [Tax Deduction & Collection Account No.]	CALF00362F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Supplier and Exporter of Aluminum Foil, Polycoated Paper, Poly Film
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 100000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track records. 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 DECLINED BY

Name :	Mr. Shekar Thakur
Designation :	Finance Executive
Contact No.:	91-33-40041790
Date :	04.06.2012

LOCATIONS

Registered Office :	228 A, Chittaranjan Avenue, P S Jorasanko, Kolkata-700006, West Bengal, India
Tel. No.:	91-33-2191812 / 2412189 / 23371948
Fax No.:	91-33-2414334
E-Mail :	accounts.flexalloys@gmail.com
Website :	www.flexalloys.com

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Shyam Sunder Jhunjhunwala
Designation :	Whole Time Director
Address :	228 A C R Avenue, Kolkata-700006, West Bengal, India
Date of Birth/Age :	14.05.1941
Date of Appointment :	23.02.1994
DIN No.:	00032792

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	U51909WB1983PLC036174	KANCHAN UDYOG LIMITED	Director	16-05-85	16-05-85	22-06-09	Active	NO
2	U27109WB1994PTC061940	FLEX ALLOYS PRIVATE LIMITED	Managing director	01-10-09	23-02-94	-	Active	NO

Name :	Mrs. Urmila Devi Jhunjhunwala
Designation :	Director
Address :	228 A C R Avenue, Kolkata-700006, West Bengal, India
Date of Birth/Age :	24.07.1945
Date of Appointment :	25.02.1997
DIN No.:	00032848
Name :	Ms. Sharad Jhunjhunwala
Designation :	Managing Director
Address :	228 A C R Avenue, Kolkata-700006, West Bengal, India
Date of Birth/Age :	18.06.1972
Date of Appointment :	23.02.1994
DIN No.:	00032879

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	U27109WB1994PTC061940	FLEX ALLOYS PRIVATE LIMITED	Managing director	01-10-09	23-02-94	-	Active	NO
2	U51109WB1982PTC035241	PODDAR INDUSTRIAL WORKS PRIVATE LIMITED	Director	22-08-08	10-06-08	-	Amalgamated	NO
3	U74140WB2008PTC130260	JAI BALAJI ADVISORS PRIVATE LIMITED	Director	03-11-08	03-11-08	25-05-10	Amalgamated	NO
4	U74140WB2008PTC130267	FLORENCE ADVISORS PRIVATE LIMITED	Director	04-11-08	04-11-08	25-05-10	Amalgamated	NO
5	U22100WB2009PTC136139	EM JAY PACKAGING PRIVATE LIMITED	Director	23-06-09	23-06-09	25-04-12	Active	NO
6	U15549WB2010PTC154991	ALFRED BEVERAGES PRIVATE LIMITED	Director	25-11-10	25-11-10	-	Active	NO
7	U51909WB2010PTC148845	VATSAL MERCANTILE PRIVATE LIMITED	Director	20-12-10	20-12-10	-	Active	NO
8	U51909WB2007PLC115424	TRINITY TRADELINK LIMITED	Director	13-12-11	13-12-11	-	Active	NO
9	U70109WB2012PTC181106	NEWEVER INFRAHOMES PRIVATE LIMITED	Director	23-05-12	23-05-12	-	Active	NO

Name :	Ms. Jaya Jhunjhunwala
Designation :	Whole Time Director
Address :	228 A C R Avenue, Kolkata-700006, West Bengal, India
Date of Birth/Age :	29.12.1945
Date of Appointment :	25.02.1997
DIN No.:	00032951

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	U27109WB1994PTC061940	FLEX ALLOYS PRIVATE LIMITED	Whole-time director	01-10-09	25-02-97	-	Active	NO
2	U22100WB2009PTC136139	EM JAY PACKAGING PRIVATE LIMITED	Director	23-06-09	23-06-09	25-04-12	Active	NO
3	U18109WB2010PTC152840	DESIRE CREATIONS PRIVATE LIMITED	Director	06-09-10	06-09-10	-	Active	NO
4	U51909WB2010PTC148845	VATSAL MERCANTILE PRIVATE LIMITED	Director	20-12-10	20-12-10	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Shekar Thakur
Designation :	Finance Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Shyam Sunder Jhunjhunwala	127710
Sharad Jhunjhunwala	192300
Manmohan Garodia	10
Bijay Garodia	10
Jaya Jhunjhunwala	89500
Urmila Devi Jhunjhunwala	22100
Sangita Agarwala	500
Shila Ganeriwala	500
Sudhir Khemka	500
Brahmanda Agarwala	100
Shyam Sunder Jhunjhunwala (HUF)	500
Shila Hiralal Kajaria (HUF)	100
Hiralal Kajaria	10000
Arun Kajaria	100
Raj Kajaria	100
Indu Bhojnagarwala	100
Shyam Agarwala	100
Sushma Kajaria	100
Gopal Sharma	100
Anand Kajaria	100
Deokinandan Kajaria	100
Anita Bhuteria	100
Sharad Jhunjhunwala (karta)	2700
TOTAL	447430

AS ON 30.09.2011

Equity Shares Break Up	Percentage
Directors or relatives of Directors	97.40
Other top fifty shareholders	2.60
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer, Supplier and Exporter of Aluminum Foil, Polycoated Paper, Poly Film
Products :	· Aluminum Foil · Polycoated Paper · Poly Film

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
Aluminum Foil	Kgs.	93613
Polycoated Paper	Kgs.	10839
Poly Film	Kgs.	383293

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

IDBI Bank Limited, MSME Group, IDBI House, 44, Shakeshpeare Sarani, Kolkata-700017, West Bengal, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Cash Credit from IDBI (The above credit facilities from IDBI are secured against hypothecation of stock, book debts and assets by way of first charge, and equitable mortgage of property of a director, pledge of investments of directors, lien on RD/FD, and personal guarantee of all the directors)	31.405	29.980
Term Loan From IDBI (The above credit facilities from IDBI are secured against by way of first charge on all the assets acquired out of Term Loan and equitable mortgage of property of a director, pledge of investments of directors, lien on RD/FD, and personal guarantee of all the directors )	2.405	2.781
Auto Loan from Bank (Secured against pledge of Vehicles acquired under H.P. agreement ) (Due within one year Rs 0.544 Million ,31.03.10 Rs. 0.515 Million)	1.275	1.016
Total	35.085	33.777
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Term Loan From Banks and financial institutions (Due within one year Rs 2.155 Millions, 31.03.2010 Rs. 3.545 Millions)	2.155	6.298
Loan From Directors	0.850	1.309
Loan From Others	2.567	3.845
Total	5.572	11.452

Banking Relations :	--
Auditors :
Name :	A.C. Bhuteria and Company Chartered Accountant
Address :	2, India Exchange Place, Kolkata-700001, West Bengal, India
Pan No.:	AAFFA4051L
Enterprises where key management personnel have significant influence (Where transactions have taken place) :	· Tirupati Packaging Products · Trade and Commerce · Imperial Distributors · Brown Dart Couriers · EM Jay Packaging Private Limited · Balaji Agro and Developers

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
447430	Equity Shares	Rs.10/- each	Rs. 4.474 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		4.474	4.172	4.172
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		21.156	16.616	14.905
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		25.630	20.788	19.077
LOAN FUNDS
1] Secured Loans		35.085	33.777	24.476
2] Unsecured Loans		5.572	11.452	13.650
TOTAL BORROWING		40.657	45.229	38.126
DEFERRED TAX LIABILITIES		0.195	0.171	0.000
TOTAL		66.482	66.188	57.203
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.925	14.437	11.283
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.045
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	25.041	25.412	17.712
	Sundry Debtors	35.351	103.866	29.878
	Cash & Bank Balances	1.596	2.534	3.609
	Other Current Assets	0.695	0.529	0.900
	Loans & Advances	2.812	6.867	2.338
Total Current Assets		65.495	139.208	54.437
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.663	87.429	8.374
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.275	0.028	0.188
Total Current Liabilities		12.938	87.457	8.562
Net Current Assets		52.557	51.751	45.875
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		66.482	66.188	57.203

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	183.448	183.059	101.333
		Other Income
		TOTAL (A)	183.448	183.059	101.333
Less	EXPENSES
		Office Expenses	171.684	172.794	92.730
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	171.684	172.794	92.730
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.764	10.265	8.603
Less	FINANCIAL EXPENSES (D)		6.553	5.530	4.105
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.211	4.735	4.498
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.540	2.218	2.448
	PROFIT BEFORE TAX (E-F) (G)		2.671	2.517	2.050
Less	TAX (H)		0.849	0.806	0.751
	PROFIT AFTER TAX (G-H) (I)		1.822	1.711	1.299
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		4.588	2.877	1.778
Less	APPROPRIATIONS
		Transfer to General Reserve	1.000	0.000	0.200
	BALANCE CARRIED TO THE B/S		5.410	4.588	2.877
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	3.263	8.665	7.216
	TOTAL EARNINGS		3.263	8.665	7.216
	Earnings Per Share (Rs.)		4.36	4.10	3.11

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.99	0.93	1.28
Return on Total Assets (PBT/Total Assets}	(%)	3.36	1.64	3.12
Return on Investment (ROI) (PBT/Networth)		0.10	0.12	0.11
Debt Equity Ratio (Total Liability/Networth)		2.10	6.39	2.45
Current Ratio (Current Asset/Current Liability)		5.06	1.59	6.36

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	No
20. Export / Import details	Yes
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

FORM 8

Corporate identity number of the company	U27109WB1994PTC061940
Name of the company	FLEX ALLOYS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	228 A, Chittaranjan Avenue, P S Jorasanko, Kolkata-700006, West Bengal, India
This form is for	Modification of charge
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Floating charge · Others
Particular of charge holder	IDBI Bank Limited, MSME Group, IDBI House, 44, Shakeshpeare Sarani, Kolkata-700017, West Bengal, India
Nature of instrument creating charge	1. Deed of Hypothecation. 2. Facility Agreement. 3. Declaration and Undertaking in the matter of Mortgage by Deposit of Title deeds of property situated at 228A Chittaranjan Avenue Kolkata 700006. 4. Sanction letter of IDBI Bank.
Date of instrument Creating the charge	26.05.2011
Amount secured by the charge	Rs. 37.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Cash Credit : @ BBR + 425 bps. Letter of Credit : Card Rate. Terms of repayment Cash Credit : Tenure 12 months. LC : Tenure Max 90 days. Repayable on Demand. Margin Cash Credit: Stock in process, Raw materials, Finished Goods: 25% Receivables : 30% LC : 25% Cash Margin. Extent and operation of the charge The charge operates as first charge and second charge basis on currents assets and fixed assets including plant and machinery of the Company both present and future to secure the financial assistance of Rs.37.500 Millions granted by IDBI bank to the Company which is repayable together with costs, interests, charges and expenses. Other The Borrower shall not do or allow anything which may prejudice the security and shall comply with the terms and conditions of the Agreement.
Short particulars of the property charged (Including location of the property)	CC : Primary: First charge on all Stocks, receivables and other current Assets of the company, both present and future. Term Loan: First pari passu charge on entire fixed assets of the company both present and future. Collateral: Cash credit: First pari passu charge on the entire fixed assets of the Company both present and future. Term Loan: 2nd charge om all Stocks, receivables and other current Assets of the company, both present and future. Equitable Mortgage of all that piece and Parcel of land measuring 6 cottahs 13 chittacks lying and being premises at 228A Chittaranjan Avenue, Kolkata 700006.
Whether any of the property or interest therein under reference is not registered in the name of the company.	Yes
If yes, in whose name it is registers	Jaya Jhun Jhunwala
Charge identification number of the charge to be modified	10129012
Date of instrument modifying the charge	26.11.2009
Particulars of the present modification	By this present modification, the working capital facilities granted by the Bank to the company has been renewed and the overall limit of credit facilities secured amounting to Rs.37.500 Millions comprises of the following limits: Cash Credit: Rs.34.000 Millions. LC (sub limit of CC): Rs.4.000 Millions (fully interchangeable with CC) Term Loan: Rs. 3.500 Millions Overall limit: Rs.37.500 Millions.

FIXED ASSETS

· Plant and Machinery

· Factory Shed

· Furniture

· Motor Vehicle

· Computer

· Mobile

· Dies, Block and Cylinder for Machine

WEBSITE DETAILS

PROFILE

Subject was incorporated in the year 1994 at Calcutta and commencing production soon after, the Company has worked every inch to become a force to reckon with in the field of Aluminium Foil conversion and Flexible Packaging Materials.

Today their company is geared with sophisticated plant and machinery, employing state of the art technology and specializing in multi-faceted packaging activities including printing, lamination, pouch packing and other areas of flexible packing.

Spear-headed with a team of professional manage, and backed by the services of a dedicated workfource, efficiency is the hallmark of their companies operation. They are especially indebted to Mr. Shyam Jhunjhunwala, a pivotal foger of the company, who has been associated with pakaging gaints like Hindalco Industries Limited Indian Alluminium Limited, India Foil Limited, Amco Vinyl Limited, Raviraj Foil Limited, Fennoplast Limited for seveal years respectively.

At Subject, the customer comes first. For once and alwats. And proving standardized services is the single most important concern of their company. Which is why, every production process at Flex Alloys is subject to strict quality parameter and conducted under the watchful eyes of experienced supervisore.

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] 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. 55.56
UK Pound	1	Rs. 85.51
Euro	1	Rs. 69.50

INFORMATION DETAILS

Information Gathered by :	PJA
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	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		44

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.