MIRA INFORM REPORT

Report Date :

30.06.2012

IDENTIFICATION DETAILS

Name :	VENLAX FLEXY PACKS PRIVATE LIMITED
Registered Office :	D. No. 35, RMS Colony, RR Pet, Eluru-534002, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.07.2007
Com. Reg. No.:	01-054926
Capital Investment / Paid-up Capital :	Rs.1.000 Million
CIN No.: [Company Identification No.]	U74900AP2007PTC054926
TAN No.: [Tax Deduction & Collection Account No.]	VPNV01670E
PAN No.: [Permanent Account No.]	AACCV5347C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Multilayer Polythene Films with Eight Colour Rotogravure Printing on Polyester, BOPP and LD with Lamination, Pouches and Bags, etc.
No. of Employees :	20 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ca (11)

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a company having moderate track records. There appears a huge accumulated loss in the records of the company, which seems to be increasing over years. The company has incurred some loss during the year 2011. Business is active. Payments are reported to be slow. Initially, the company can be considered for business dealings on a safe and secured 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. Rama Raju
Designation :	Accountant
Contact No.:	91-8019892171
Date :	28.06.2012

LOCATIONS

Registered Office :	D. No. 35, RMS Colony, RR Pet, Eluru-534002, Andhra Pradesh, India
Tel. No.:	Not Available
Mobile No.:	91-8019892171 [Mr. Rama Raju] 91-9848133925 [Mr. Raghavendra Rao]
Fax No.:	Not Available
E-Mail :	tineluru@gmail.com
Factory :	Plot No. 7, B, Industrial Estate, Satrampadu, Eluru-534007, Andhra Pradesh, India
Tel. No.:	91-8812-237925
Area :	975 Sq. Yards
Location :	Owned

DIRECTORS

As on 29.09.2011

Name :

Mr. Buddana Panduranga Rao

Designation :

Director

Address :

35, RMS Colony, RR Pet, Eluru-534002, Andhra Pradesh, India

Date of Birth/Age :

21.08.1960

Date of Appointment :

30.07.2007

Din No.:

01000844

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	Company/ LLP Status	Defaulting status
1	U25209AP1997PLC026484	LAXMI PROPYLENE LIMITED	Managing director	22-02-07	22-02-07	Active	NO
2	U74900AP2007PTC054926	VENLAX FLEXY PACKS PRIVATE LIMITED	Director	30-07-07	30-07-07	Active	NO

Name :

Mr. Ragavendra Buddana Rao

Designation :

Director

Address :

D. No. 35, RMS Colony, RR Pet, Eluru-534002, Andhra Pradesh, India

Date of Birth/Age :

21.09.1968

Date of Appointment :

30.07.2007

Din No.:

01340352

KEY EXECUTIVES

Name :	Mr. Rama Raju
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
B. Venkata Laxmi	30000
B. Subhash Chandra	10000
B. Giri Pavan Kumar	10000
B. Pandu Ranga Rao	20000
B. Lalitha	10000
B. Raghavendra Rao	20000
Total	100000

As on 29.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Multilayer Polythene Films with Eight Colour Rotogravure Printing on Polyester, BOPP and LD with Lamination, Pouches and Bags, etc.

GENERAL INFORMATION

Customers :

Wholesalers

No. of Employees :

20 [Approximately]

Bankers :

· Andhra Bank, Ramachandra Rao Peta, Eluru-534002, Andhra Pradesh, India

· The Karur Vysya Bank Limited, D. No. 22B-5-28, Kanukolanuvari Street, Nerella Raja’s Building, Power Pet, Eluru-534002, Andhra Pradesh, India

Facilities :

SECURED LOAN	As on 31.03.2011 [Rs. in Millions]	As on 31.03.2010 [Rs. in Millions]
Working Capital Cash Credit, From Andhra Bank	5.933	5.969
Term Loan From Andhra Bank	7.351	9.095
Total	13.284	15.064

Banking Relations :	--
Auditors :
Name :	Rambabu and Company Chartered Accountants
Address :	23B-5-75, RR Pet, Eluru-534002, Andhra Pradesh, India
Pan No.:	AACFR1603G
Associates/Subsidiaries :	· Laxmi Polymers Address: Shed No. 1, Industrial Estate, Satrampadu, Eluru-534007, Andhra Pradesh, India Line of Business: Manufacturer of Pet Bottles. · Laxmi Propylene Limited Address: Plot No. 25, Industrial Estate, Satrampadu, Eluru-534007, Andhra Pradesh, India Line of Business: Manufacturer of Polythene Films.

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.10/- each	Rs.1.000 Million

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		1.000	0.100	0.100
2] Share Application Money		5.367	6.267	6.267
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(1.444)	(1.264)	(0.205)
NETWORTH		4.923	5.103	6.162
LOAN FUNDS
1] Secured Loans		13.284	15.064	15.299
2] Unsecured Loans		1.300	0.000	0.000
TOTAL BORROWING		14.584	15.064	15.299
DEFERRED TAX LIABILITIES		1.155	0.744	0.240
Investment Subsidy From AP Government		1.500	0.000	0.000
TOTAL		22.162	20.911	21.701
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		16.113	16.402	15.157
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	9.898	4.808	3.461
	Sundry Debtors	7.935	4.928	2.349
	Cash & Bank Balances	0.553	0.940	2.202
	Other Current Assets	0.142	0.075	0.060
	Loans & Advances	0.136	(0.095)	0.921
Total Current Assets		18.664	10.656	8.993
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	6.494	3.702	2.236
	Other Current Liabilities	5.962	2.280	0.037
	Provisions	0.255	0.310	0.369
Total Current Liabilities		12.711	6.292	2.642
Net Current Assets		5.953	4.364	6.351
MISCELLANEOUS EXPENSES		0.096	0.145	0.193
TOTAL		22.162	20.911	21.701

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	38.825	39.060	12.672
		Other Income	0.000	0.001	0.000
		TOTAL (A)	38.825	39.061	12.672
Less	EXPENSES
		Manufacturing Expenses	33.397	31.805	11.887
		Administrative Expenses	1.521	1.560	1.242
		Selling and Distribution Expenses	6.139	4.493	1.661
		Stock Increase/ Decrease	(5.090)	(1.347)	(3.460)
		TOTAL (B)	35.967	36.511	11.330
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) I		2.858	2.550	1.342
Less	FINANCIAL EXPENSES (D)		1.816	2.359	0.955
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.042	0.191	0.387
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.783	0.746	0.335
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		0.259	(0.555)	0.052
Less	TAX (H)		0.439	0.504	0.257
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		(0.180)	(1.059)	(0.205)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(1.264)	(0.205)	0.000
	BALANCE CARRIED TO THE B/S		(1.444)	(1.264)	(0.205)
	Earnings / (Loss) Per Share (Rs.)		(1.80)	(10.59)	(2.05)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	(0.46)	(2.71)	(1.62)
Net Profit Margin (PBT/Sales)	(%)	(0.67)	(1.42)	(0.41)
Return on Total Assets (PBT/Total Assets}	(%)	(0.74)	(2.05)	(0.22)
Return on Investment (ROI) (PBT/Networth)		(0.05)	(0.11)	(0.01)
Debt Equity Ratio (Total Liability/Networth)		5.54	4.18	2.91
Current Ratio (Current Asset/Current Liability)		1.47	1.69	3.40

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	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	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 (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

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Creation of charge
Corporate identity number of the company	U74900AP2007PTC054926
Name of the company	VENLAX FLEXY PACKS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	D. No. 35, RMS Colony, RR Pet, Eluru-534002, Andhra Pradesh, India
Type of charge	Book Debts Movable Property [not being pledge] Floating Charge Any Interest in Immovable Property
Particular of charge holder	The Karur Vysya Bank Limited, D. No. 22B-5-28, Kanukolanuvari Street, Nerella Raja’s Building, Power Pet, Eluru-534002, Andhra Pradesh, India
Email	eluru@kvbmail.com
Nature of description of the instrument creating or modifying the charge	1.Hypothecation agreement for current assets 2. Hypothecation agreement for machinery 3. EM charge on super structures situated at R.S. No. 184 (P), Plot No.7B, APIIC - Iala, Vatluru, Pedapadu Mandal, SRO, Vatluru
Date of instrument Creating the charge	26.12.2011
Amount secured by the charge	Rs.15.600 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest For OCC Limit: 4.25% Over and above the base rate (present BR 11.25%) and present effective rate being 15.50%. For Machinery: 4.75% over and above the BR of the bank effective rate being 16.00% Terms of Repayment For OCC Limit : renewable ever year For Machinery : 60 Equal Monthly Installments Margin For OCC Limit : 25% on Stocks and Book Debts(lesser than 90 days): 50% For Machinery : 25% Extent and Operation of the charge For OCC Limit : First and Exclusive Hypothecation charge on All the Current Assets Stored in Business Premises of the Company or Elsewhere including receivables anbd book debts ( Both Present and Future) as Security for the overall working capital limits of Rs. 8.700 Millions. For Machineries: Hypothecation of Machineries for limit of Rs.6.900 Millions Sanctioned to the company.
Short particulars of the property charged	First and Exclusive Hypothecation charge on all the current assets stored in business premises of the company. Elsewhere including receivables and book debts (both and future) as security for the overall working capital limits of Rs. 8.700 Millions. For Machinery: Rs.6.900 Millions Sanctioned to the company.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Water Bore Well

· Furniture and Fixtures

· Computer

· Office Equipments

TRADE REFERENCES:

· K.P.R. Fertilizers Limited

· Nagarjuna Agrichem Limited

· Jayalakshmi Fertilizers

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.56.30
UK Pound	1	Rs.88.06
Euro	1	Rs.70.90

INFORMATION DETAILS

Report Prepared by :

TPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	2
PAID-UP CAPITAL	1~10	2
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	1
--LEVERAGE	1~10	1
--RESERVES	1~10	1
--CREDIT LINES	1~10	1
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		11

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.