MIRA INFORM REPORT

Report Date :

15.06.2012

IDENTIFICATION DETAILS

Name :	MONARCH MULTILAYERS PRIVATE LIMITED
Registered Office :	Shubham 47-A, Khare Town, Dharampeth, Nagpur – 440010, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.09.1990
Com. Reg. No.:	11-58010
Capital Investment / Paid-up Capital :	Rs. 4.000 Millions
CIN No.: [Company Identification No.]	U27130MH1990PTC058010
TAN No.: [Tax Deduction & Collection Account No.]	NGPM00983D
PAN No.: [Permanent Account No.]	AAACM9575F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Multilayer Films.
No. of Employees :	40 (Approximately)

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 84000
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 (GENERAL DETAILS)

Name :	Mr. Anand
Designation :	Director
Contact No.:	91-9921021000
Date :	13.06.2012

LOCATIONS

Registered Office / Factory 1 :	Shubham 47-A, Khare Town, Dharampeth, Nagpur – 440010, Maharashtra, India
Tel. No.:	91-7104-2366378/ 235137 91-712-2527966
Mobile No.:	91-9921021000 (Mr. Anand)
Fax No.:	91-7104-2366378/ 235137 91-712-2545863
E-Mail :	prathi75@hotmail.com crporate_ngppm@yahoo.co.in
Location :	Owned
Factory 2 :	M – 3, MIDC Industrial Area, Hingra Road, Nagpur – 440028, Maharashtra, India

DIRECTORS

AS ON 12.09.2011

Name :	Mr. Purshottam M. Rathi
Designation :	Managing Director
Address :	Shubham 47-A, Khare Town, Dharampeth, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	22.03.1947
Date of Appointment :	04.09.1990
Date of Cessation :	21.11.2011
DIN No.:	00553161
Name :	Mrs. Vidyadevi S. Rathi
Designation :	Director
Address :	Shubham 47-A, Khare Town, Dharampeth, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	25.07.1961
Date of Appointment :	01.05.2000
Date of Cessation :	21.11.2011
DIN No.:	01471693
Name :	Mr. Girdhar M. Rathi
Designation :	Director
Address :	Behind Saibaba Mandir, Nagpur Road, Chnadrapur, India
Date of Birth/Age :	24.06.1943
Date of Appointment :	04.09.1990
Date of Cessation :	21.11.2011
DIN No.:	01471751
Name :	Mr. Anand Murlidhar Rathi
Designation :	Director
Address :	Shubham 47-A, Khare Town, Dharampeth, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	27.12.1981
Date of Appointment :	01.05.2000
DIN No.:	01477304

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 12.09.2011

Names of Shareholders	No. of Shares
MURLIDHAR Rathi	8850
Pushpadevi Rathi	8900
Murlidhar Rathi (HUF)	13350
Anand Rathi	8900
Total	40000

AS ON 12.09.2011

Equity Shares Break Up	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Multilayer Films..

Products :

Products Description	Item Code No.
Co-Extructed Polythene Films	303,717,009

Exports :

Products :

Multilayer Films

Countries :

Australia

Imports :

Products :

Raw Materials

Countries :

· Qatar

· China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Multilayers Film	Per Shift /Tons MT	2220	1000.347
Scrap	Tons MT	--	43.152

GENERAL INFORMATION

Suppliers :

Qatar Petrochemical

Customers :

Wholesalers and Retailers

· Haldiram Food International

No. of Employees :

40 (Approximately)

Bankers :

· State Bank of India, Hingna Industrial Estate Branch, Nagpur - 440028, Maharashtra, India

· SME Branch, Plot No. X-43, Hingna MIDC Industrial Area, Hingna Road, Nagpur-440016, Maharashtra, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From State Bank of India
Working Capital Loan	20.912	14.968
(Secured against hypothecation of stock, stores books debts etc and guaranteed by all the directors)
Total	20.912	14.968
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Directors and Shareholders	2.388	0.751
Sales Tax Deferrement Loan	0.866	1.781
Total	3.254	2.532

Banking Relations :	--
Auditors :
Name :	Paliwal Modani and Company Chartered Accountant
Address :	Parkhi Bhavan, Near Post Office Iitwari, Nagpur – 440002, Maharashtra, India
Pan No.:	AABFP5515E
Associates :	· Monarch Extrusion Private Limited · Monarch Plastics Private Limited · Monarch Infrastuture · C. M. Rathi and Brothers

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
50000	Equity Shares	Rs.100/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40000	Equity Shares	Rs.100/- 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		17.004	14.816	13.704
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		21.004	18.816	17.704
LOAN FUNDS
1] Secured Loans		20.912	14.968	10.138
2] Unsecured Loans		3.254	2.532	2.747
TOTAL BORROWING		24.166	17.500	12.885
DEFERRED TAX LIABILITIES		1.185	1.252	1.096
TOTAL		46.355	37.568	31.685
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.619	11.368	9.298
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	11.361	6.699	9.352
	Sundry Debtors	17.253	13.395	14.703
	Cash & Bank Balances	0.718	1.160	0.993
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	19.824	9.354	3.027
Total Current Assets		49.156	30.608	28.075
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.342	3.639	4.815
	Other Current Liabilities	0.814	0.701	0.533
	Provisions	0.264	0.068	0.340
Total Current Liabilities		13.420	4.408	5.688
Net Current Assets		35.736	26.200	22.387
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		46.355	37.568	31.685

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	108.163	82.651	78.922
		Other Income	0.423	0.334
		TOTAL (A)	108.586	82.985	78.922
Less	EXPENSES
		Raw Material Consumed	90.837	68.235	74.226
		Payment and Benefits to Employees	2.097	0.979
		Manufacturing and Other Expenses	9.406	7.126
		Increase / (Decrease) in Stock	(0.276)	1.745
		TOTAL (B)	102.064	78.085	74.226
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		6.522	4.900	4.696
Less	FINANCIAL EXPENSES (D)		2.386	1.550	1.458
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.136	3.350	3.238
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.010	1.184	1.026
	PROFIT BEFORE TAX (E-F) (G)		3.126	2.166	2.212
Less	TAX (H)		0.939	0.897	0.780
	PROFIT AFTER TAX (G-H) (I)		2.187	1.269	1.432
Less	INCOME TAX EARLIER YEARS		0.000	0.156	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		13.105	11.992	10.560
	BALANCE CARRIED TO THE B/S		15.292	13.105	11.992
	IMPORTS VALUE		22.580	5.012	2.215
	Earnings Per Share (Rs.)		54.69	31.73	35.80

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.01	1.53	1.81
Net Profit Margin (PBT/Sales)	(%)	2.89	2.62	NA
Return on Total Assets (PBT/Total Assets}	(%)	5.23	5.16	5.92
Return on Investment (ROI) (PBT/Networth)		0.15	0.12	0.12
Debt Equity Ratio (Total Liability/Networth)		1.85	1.23	1.05
Current Ratio (Current Asset/Current Liability)		3.66	6.94	4.94

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	Yes
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	Yes
15. Capital in the business	Yes
16. Details of sister concerns	Yes
17. Major suppliers	Yes
18. Major customers	Yes
19. Payments terms	Yes
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

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors
- For Goods Supplied	9.149	1.454	3.157
- For Expenses and Other	3.193	2.185	1.658
Total	12.342	3.639	4.815

FINANCIAL PERFORMANCE:

During the year the profits of the company increased substantially due to improved market conditions. The Net Profit after Tax of the Company was Rs. 2.188 Millions as compared to Rs. 1.269 Millions during the previous year.

FORM 8

Corporate identity number of the company	U27130MH1990PTC058010
Name of the company	MONARCH MULTILAYERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Shubham 47-A, Khare Town, Dharampeth, Nagpur – 440010, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable property
Particular of charge holder	· State Bank of India SME Branch, Plot No. X-43, Hingna MIDC Industrial Area, Hingna Road, Nagpur-440016, Maharashtra, India Email: srikanta.pagal.me@sbi.co.in
Nature of instrument creating charge	Memorandum for Recording Extension of Mortgage by Deposit of Title Deeds Covering Enhanced Limits and / or Creation of Equitable Mortgage on Additional Properties For Existing Limits and Enhanced Limits and Additional Facilities
Date of instrument Creating the charge	25.01.2012
Amount secured by the charge	Rs. 31.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest 3.50 % above Base rate, present effective being 13.50%. further the rate will be subject to changes as per the RBI directives and as per the discretion of the bank from time to time. Terms of repayment Repayment on demand. Subject to review / renewal after 12 months Extent and operation of the charge At the request of the borrower company, the bank has enhanced overall banking limits up to Rs. 31.500 Millions against Mortgage of the immoveable property i.e. Plot No. M-3, M.I.D.C, Hingna, Mouza Nildoh, Nagpur, admeasuring area 2,100 Sq. Mtrs. The Charge stands modified up to Rs. 31.500 Millions
Short particulars of the property charged (Including location of the property)	Mortgage of the immoveable property i.e. Plot No. M-3, M.I.D.C, Hingna, Mouza Nildoh, Nagpur, admeasuring area 2,100 Sq. Mtrs
Charge identification number of the charge to be modified	90238402
Particulars of the present modification	At the request of the borrower company, the bank has enhanced overall banking limits up to Rs. 315.00 Millions against Mortgage of the immoveable property i.e. Plot No. M-3, M.I.D.C, Hingna, Mouza Nildoh, Nagpur, admeasuring area 2,100 Sq. Mtrs. The Charge stands modified up to Rs. 31.500 Millions

TRADE REFRENCES

· Haldiram Food International

· Qatar Petrochemical

FIXED ASSETS:

· Leasehold Land

· Flat

· Factory Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixture

· Vehicle

· Computers

· Office Equipment

· Air Conditioner

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. 55.79
UK Pound	1	Rs. 83.37
Euro	1	Rs. 70.07

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	BYI

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	YES
--AFFILIATION	YES/NO	YES
--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.