MIRA INFORM REPORT

Report Date :

18.06.2012

IDENTIFICATION DETAILS

Name :	B AND A PACKAGING INDIA LIMITED (w.e.f. 08.07.2010)
Formerly Known As :	B AND A MULTIWALL PACKAGING LIMITED
Registered Office :	1185/1186, Tankapani Road, Bhubaneswar - 751 018, Orissa
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.01.1986
Com. Reg. No.:	15-001624
Capital Investment / Paid-up Capital :	Rs.49.605 Millions
CIN No.: [Company Identification No.]	L21021OR1986PLC001624
Legal Form :	A Public Limited Liability company. The company’s Shares are Listed on the Stock Exchange.
Line of Business :	Manufacturer of Flexible Packaging.
No. of Employees :	100 (Approximately) (In Office + In Factory)

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 320000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. The company is not traded on BSE in the last 30 days. However, 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 made 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. Das
Designation :	Purchase Manager
Contact No.:	91-33-22178048
Date :	13.06.2012

LOCATIONS

Registered Office :	1185/1186, Tankapani Road, Bhubaneswar - 751 018, Orissa, India
Tel. No.:	91-674-430064
Fax No.:	Not Available
E-Mail :	contact@bampl.com
Website :	http://www.bampl.com
Location :	Owned
Corporate Office :	113, Park Street, 9th Floor, Kolkata - 700 016, West Bengal, India
Tel. No.:	91-33-22269582 / 22295098 / 22657389 / 22168862 / 22178048
Fax No.:	91-33-22277538
E-Mail :
Factory :	22, Balgopalpur Industrial Area, Balasore - 756 020, Orissa, India
Tel. No.:	91-6782-275725 / 729

DIRECTORS

As on 31.03.2011

Name :	Mr. Hemendra Prasad Barooah
Designation :	Whole-time Director and Executive Chairman
Name :	Mr. Ranadurjoy Roy Choudhury
Designation :	Managing Director
Name :	Mr. Panchkari Banerjee
Designation :	Director
Name :	Mr. Tarun Chandra Dutt
Designation :	Director
Name :	Mr. Vijay Raghuram Shetty
Designation :	Director
Name :	Mrs. Gargi Barooah
Designation :	Director
Name :	Mr. Anjan Ghosh
Designation :	Director
Name :	Mr. Sudipto Sarkar
Designation :	Director

KEY EXECUTIVES

Name :	Ms. Nabagataa Choudhury
Designation :	Company Secretary
Name :	Mr. Das
Designation :	Purchase Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	35,300	0.71
Bodies Corporate	3,554,829	71.66
Sub Total	3,590,129	72.37
(2) Foreign
Bodies Corporate	100,000	2.02
Sub Total	100,000	2.02
Total shareholding of Promoter and Promoter Group (A)	3,690,129	74.39
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	541,000	10.91
Sub Total	541,000	10.91
(2) Non-Institutions
Bodies Corporate	124,300	2.51
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	592,071	11.94
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	13,000	0.26
Sub Total	729,371	14.70
Total Public shareholding (B)	1,270,371	25.61
Total (A)+(B)	4,960,500	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	--	--
(1) Promoter and Promoter Group	--	--
(2) Public	--	--
Sub Total	--	--
Total (A)+(B)+(C)	4,960,500	--

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others
Bodies corporate
Directors or relatives of Directors
Other top fifty shareholders
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Flexible Packaging.

Products :

Product Description	Item Code No.:
Sacks and Bags of Paper	4819 30 00

Exports :

Products :

· Flexible Packaging

Countries :

· Kenya

· Dubai

· Vietnam

Imports :

Products :

· Raw Material

Countries :

· Austria

· China

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Paper Sacks	Nos.	60 Million	35 Million	9.78 Million

Note: Capacity of Paper Sacks plant is dependant on the product-mix. Annual Installed capacity of 35 Million is based on production of cement sacks only. With the present product-mix annual capacity works out to 9 Million Sacks.

GENERAL INFORMATION

Suppliers :

· Henkel

Customers :

Wholesalers and Retailers

· Hitech Carbon

· Aditya Birla

No. of Employees :

100 (Approximately) (In Office + In Factory)

Bankers :

State Bank of India, Industrial Finance Branch, 11, Dr. U. N. Brahmachari Street

Kolkata - 700 017, West Bengal, India

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.12.2009 (Rs. in Millions)
From State Bank of India
Term Loan (Secured by 1st charge over the entire Plant and Machinery and other fixed Assets pertaining to the Flexible Packaging Material Project)	0.025	5.499
Cash Credit (Secured by hypothecation of Company’s stocks, receivables and entire current Assets both present and future)	52.205	45.148
All the above loans are collaterally secured by a) Extension of charge over Factory Land, Building, Plant and Machinery of the company including Assets of proposed project b) Equitable mortgage of the Flat No. 1 and 2, 3rd floor at 55/24, Bimannagar, Sardarpara, Kaikhali, P.S. Rajarhat, 24 Parganas(N) in the name of Barooahs and Associates Private Limited c) Personal guarantee of Shri H. P. Barooah, Director and Corporate Guarantee of Barooahs and Associates Private Limited
From HDFC BANK LIMITED (Secured by hypothecation of a Motor Car)	0.244	0.360
Total	52.474	51.007
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.12.2009 (Rs. in Millions)
From Barooahs and Associates Private Limited	14.000	0.000
From Director	5.400	0.000
Total	19.400	0.000

Banking Relations :	--
Auditors :
Name :	APS Associates Chartered Accountants
Address :	3C Madan Street, Kolkata - 700 072, West Bengal, India

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
80,00,000	Equity Shares	Rs.10/- each	Rs.80.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
49,60,500	Equity Shares	Rs.10/- each	Rs.49.605 Millions
	Add : Forfeited Shares		Rs.0.197 Million
	Total		Rs.49.802 Millions

Note:

Out of above 35,54,829 Equity Shares are held by the holding company, B & A Limited

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011 (15 Months)	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		49.605	49.605
2] Share Forfeited		0.197	0.197
3] Reserves & Surplus		30.935	16.391
4] (Accumulated Losses)		0.000	0.000
NETWORTH		80.737	66.193
LOAN FUNDS
1] Secured Loans		52.474	51.007
2] Unsecured Loans		19.400	0.000
TOTAL BORROWING		71.874	51.007
DEFERRED TAX LIABILITIES		2.708	2.348
TOTAL		155.319	119.548
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		31.509	30.931
Capital work-in-progress		0.073	0.307
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	66.340	53.564
	Sundry Debtors	44.355	35.149
	Cash & Bank Balances	8.881	9.320
	Other Current Assets	0.000	0.000
	Loans & Advances	46.798	11.202
Total Current Assets		166.374	109.235
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	31.697	11.618
	Other Current Liabilities	2.878	2.332
	Provisions	8.062	6.975
Total Current Liabilities		42.637	20.925
Net Current Assets		123.737	88.310
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		155.319	119.548

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.12.2009
	SALES
		Income	273.245	186.646
		Other Income	1.289	0.910
		TOTAL (A)	274.534	187.556
Less	EXPENSES
		Materials Consumed	191.696	125.044
		Sales Tax	7.627	4.759
		Operating Expenses	44.084	26.326
		(Increase)/Decrease in Finished Goods and Materials in Process	(3.676)	2.512
		TOTAL (B)	239.731	158.641
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		34.803	28.915
Less	FINANCIAL EXPENSES (D)		10.542	12.243
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		24.261	16.672
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.947	4.063
	PROFIT BEFORE TAX (E-F) (G)		22.314	12.609
Less	TAX (H)		7.770	6.484
	PROFIT AFTER TAX (G-H) (I)		14.544	6.125
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(6.971)	(13.096)
	BALANCE CARRIED TO THE B/S		7.573	(6.971)
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.782	4.865
	TOTAL EARNINGS		0.782	4.865
	IMPORTS
		Raw Materials	102.483	54.672
	TOTAL IMPORTS		102.483	54.672
	Earnings Per Share (Rs.)		2.93	1.23

KEY RATIOS

PARTICULARS		31.03.2011	31.12.2009
PAT / Total Income	(%)	5.30	3.27
Net Profit Margin (PBT/Sales)	(%)	8.17	6.76
Return on Total Assets (PBT/Total Assets}	(%)	11.28	9.00
Return on Investment (ROI) (PBT/Networth)		0.28	0.19
Debt Equity Ratio (Total Liability/Networth)		1.42	1.09
Current Ratio (Current Asset/Current Liability)		3.90	5.22

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) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	No
8) No. of employees	Yes
9) Name of person contacted	Yes
10) Designation of contact person	Yes
11) Turnover of firm for last two years	Yes
12) Profitability for last two 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	Yes
18) Major customers	Yes
19) Payments terms	Yes
20) Export / Import details (if applicable)	Yes
21) Market information	--
22) Litigations that the firm / promoter	--
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	No

YEAR IN RETROSPECT

The net sales and other income for the period were Rs.274.534 Millions as against Rs.187.556 Millions during the previous financial year ended 31st December, 2009 comprising of 12 months from 01.01.2009 to 31.12.2009, booking an increase of approximately 46% which is quite optimistic. Profit after tax for the fifteen months period ended 31.03.2011 registered an encouraging increase of approximately 137%.

MANAGEMENT DISCUSSION & ANALYSIS REPORT

INDUSTRY STRUCTURE AND DEVELOPMENT

During the year 2010 tea industry continued to do well buoyed by the domestic demand growth and soaring prices. For tea sacks they could achieve a growth of 26% by volume and 28% by turnover on 2010 (year to year basis). This has been accomplished through intense retail push at Jorhat and Cochin, tapping Nepal and Siliguri market and adding new customers. The tea market overview for 2011 is good so far and maintaining this trend they envisage considerable growth in their tea sack business during the year. They plan to establish a distribution centre at Coimbatore to support this business growth.

Riding on automobile-boom Carbon Black industry is also doing quite well. Though they had realized good growth during 2010, business this year is choppy due to highly fluctuating paper availability and soaring prices.

They plan to take a closer look this year in Chemicals market for specialty-sacks which apparently is growing in India.

OUTLOOK

Based on the projected GDP growth and predicted normal monsoon, their outlook for the business in 2011-12 remains quite positive. They are also quite hopeful of improving their credit-rating, which should help them in reducing finance cost. Utilizing successfully their marketshare expansion programme, capacity development for flexible packaging and efficient cost-conscious operations, the Company plans to realize sustainable growth and profitability.

FINANCIAL PERFORMANCE

The turnover achieved for the fifteen months period ended 31.03.2011 was Rs.300.494 Millions, a growth of 48.56% over the previous financial year ended 31.12.2009 (12 months period from 01.01.2009 to 31.12.2009). Profit after tax was Rs.14.543 Millions as against Rs.6.125 Millions, an increase of 137.43%.

CONTINGENT LIABILITIES

(Rs. In Millions)

Particulars	31.03.2011 (15 Months)	31.12.2009
Bank Guarantee	0.082	0.373
Sales Tax	6.402	9.994
Bill discounting	0.561	0.000

TRADE REFERENCES:

· Henkel

· Hitech Carbon

· Aditya Birla

FIXED ASSETS:

· Land (Leasehold)

· Building

· Plant and Machinery

· Electrical Installation

· Furniture and Fixture

· Office Equipment

· Vehicle

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.86.69
Euro	1	Rs.70.44

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	BSN

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	YES
--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.