MIRA INFORM REPORT

Report Date :

08.05.2012

IDENTIFICATION DETAILS

Name :	TEXPLAST INDUSTRIES LIMITED (w.e.f.14.10.1996 )
Formerly Known As :	TEXPLAST ENGINEERS LIMITED (w.e.f.29.09.1994) TEXPLAST ENGINEERS PRIVATE LIMITED
Registered Office :	Gut No. 39/40, Village Nehroli, Taluka Wada, Thane – 421312, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	31.12.1970
Com. Reg. No.:	11-014933
Capital Investment / Paid-up Capital :	Rs.50.926 Millions
CIN No.: [Company Identification No.]	L27100MH1970PLC014933
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Packaging Materials.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 350000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an old and established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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. Shekar
Designation :	Accounts Manager
Contact No.:	91-22-23075019
Date :	30.04.2012

LOCATIONS

Registered Office Factory :	Gut No. 39/40, Village Nehroli, Taluka Wada, Thane – 421312, Maharashtra, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	accounts@texplast.com
Website :	www.texplast.com
Location :	Owned
Corporate Office :	210-212, Anand Estate, 2nd Floor, 189/A, Sane Guruji Marg, Mumbai – 400011, Maharashtra, India
Tel. No.:	91-22-23075019/ 23075022/ 23075308
Fax No.:	91-22-23075019
E-Mail :	texplast@vsnl.com

DIRECTORS

As on 29.09.2011

Name :

Mr. Sukumar Nandlal Shah

Designation :

Managing Director

Address :

1302-B, Surya Apartment, Bhulabhai Desai Road, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

16.02.1951

Date of Appointment :

01.06.1972

DIN No.:

00202546

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	L27100MH1970PLC014933	TEXPLAST INDUSTRIES LIMITED	Managing director	29/09/2011	1/06/1972	-	Active	NO
2	U99999MH1992PTC066428	PRISTINE CHEMICALS PRIVATE LIMITED	Director	21/04/1992	21/04/1992	-	Active	NO

Name :

Mr. Puthamkurichi Venkateswara Narayanan

Designation :

Director

Address :

44/328, Surbhi Co-op. HSG. Soc. Ltd., Off Hingwala Lane, Pant Nagar, Ghatkopar, Mumbai – 400075, Maharashtra, India

Date of Birth/Age :

10.03.1941

Date of Appointment :

31.07.2001

DIN No.:

00060084

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	L27100MH1970PLC014933	TEXPLAST INDUSTRIES LIMITED	Director	31/07/2001	31/07/2001	-	Active	NO
2	L21011MH1950FLC145537	THE PAPER PRODUCTS LIMITED	Director	30/03/2002	30/03/2002	-	Active	NO
3	U99999MH1962PLC012424	BALMAR LAWRIE-VAN LEER LIMITED	Director	12/04/2002	12/04/2002	6/06/2008	Active	NO
4	U21010MH1965GAP013226	INDIAN FLEXIBLE PACKAGING AND FOLDING CARTON MANUFACTURERS ASSOCIATION	Director	6/11/2006	6/11/2006	30/09/2009	Active	NO

Name :

Mr. Amit Banshidhar Bothra

Designation :

Director

Address :

8/10 Kavel Cross Lane, 4th Floor, Sonawala Bldg., Mumbai- 400002, Maharashtra, India

Date of Birth/Age :

16.04.1980

Date of Appointment :

27.01.2006

DIN No.:

01269396

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	L72100MH1989PLC053467	SPARC SYSTEMS LIMITED	Director	31/12/2005	31/12/2005	-	Active	NO
2	L27100MH1970PLC014933	TEXPLAST INDUSTRIES LIMITED	Director	27/01/2006	27/01/2006	-	Active	NO

Name :

Mr. Bharat Nautamlal Doshi

Designation :

Director

Address :

Sion Hospital, Gujrat Society, R. No.3/188, Near Jain Temple, Sion, Mumbai- 400022, Maharashtra, India

Date of Birth/Age :

16.12.1944

Date of Appointment :

27.01.2006

DIN No.:

02421434

Name :

Mr. Rahul Sukumar Shah

Designation :

Whole- time Director

Address :

14th Floor, B 1401, Surya Apt, 53, B. D. Road, Mumbai- 400026, Maharashtra, India

Date of Birth/Age :

01.03.1975

Date of Appointment :

28.102009

DIN No.:

02872788

Name :

Mr. Sarjerao Bajirao Patil

Designation :

Whole- time Director

Address :

B/707, 7th Flr., Maitri Lotus, Maitri Garden, Nr. Oswal Park, Pokhararan- 2, Thane- 400601, Maharashtra, India

Date of Birth/Age :

20.07.1964

Date of Appointment :

08.08.2003

DIN No.:

02425728

KEY EXECUTIVES

Name :	Mr. Shekar
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Sukumar Shah	1005300
Glance Finance Limited	474250
Manish Manasukhlal Maradiya	449950
Anupa Shah	345000
Smita Sukumar Shah	287050
Sukumar N Shah	250400
Sukumar Nandlal Shah	248500
Smita Shah	200000
Vinod Manekchand Rupani	200000
Smita Sukumar Shah	159750
Dinesh Kothari	150000
V. Natrajan	125450
ManI Capitals Limited	90300
Anupa S Shah	61500
Surendra S Karnavat	50000
Nalini S Karnavat	50000
Calico Industrial Engineers Private Limited	49000
Sukumar Shah	41600
Rahul S Shah	36750
Gopal Krishna Agarwal	30000
Sukumar Nandlal Shah	28500
Sushila Agarwal	20000
Pat Financial Consultants Private Limited	19600
Smita Shah	11800
Rajesh Shah	10000

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

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	3.15
Bodies corporate	2.96
Directors or relatives of Directors	51.10
Other top fifty shareholders	42.79
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Packaging Materials.

Products :

PRODUCT DESCRIPTION	ITC CODE NO.
Jumbo Bags and Woven Sacks	392390

Exports :

Products :

Packaging Materials

Countries :

European Countries

Terms :

Selling :

Cash/ Credit

Purchasing :

Cash/ Credit

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
FIBC’s, Jumbo Bags,Woven Sacks etc.	M. T.	10332	1727.861
Production for Others (Job)	M. T.	NA	550.703
Scrap	M. T.	NA	353.573

GENERAL INFORMATION

Suppliers :

· Reliance

· IOCL

· Halfia

Customers :

Wholesalers and Retailers

· Unipack

No. of Employees :

500 (Approximately)

Bankers :

· Indian Overseas Bank, “Sadhana”, 378, L J Road, Mahim, Mumbai – 400016, Maharashtra, India

· Bank of Baroda, Majiwade Branch, Thane-411012, Maharashtra, India

Facilities :

Working Capital – Rs.127.500 Millions, Cash Credit – Rs.17.500 Millions

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans banks secured	(A) 8.602	(B) 41.038
Foreign currency loans banks secured	(C) 61.723	0.000
Working capital loans banks secured	(D) 60.717	(E) 37.955
Loans taken for vehicles secured	(F) 0.734	(G) 0.206
Finance lease obligation long-term secured	(H) 0.929	(I) 0.929
Total	132.705	80.128
Note: (A) Term Loan From Indian Overseas Bank (B) Term Loan From Indian Overseas Bank (C) Term Loan and Buyer's Credit From Indian Overseas Bank (D) From Indian Overseas Bank (E) From Indian Overseas Bank (F) From Axis Bank and Kotak Mahindra Prime Limited.(NBFC) - Secured against Hypothecation of respective Vehicle and PDC's for Principal and Inerest payable thereon. (G) From Axis Bank - Secured against Hypothecation of respective Vehicle and PDC's for Principal and Inerest payable thereon. (H) From Mafatlal Finance(NBFC) - Secured against Hypothecation of Plant and Machinery (I) From Mafatlal Finance(NBFC) - Secured against Hypothecation of Plant and Machinery
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans directors unsecured	13.397	7.059
Deferred sales tax loan unsecured	(A) 4.425	(B) 4.424
Other debt unsecured	(C) 20.751	(D) 2.736
Total	38.573	14.219
Note: (A) Sales Tax (B) Sales Tax (C) Inter Corporate Loan (D) Inter Corporate Loan

Banking Relations :	--
Auditors :
Name :	Lukad and Jain Chartered Accountants
Address :	46, Mulji Jetha, 2^nd Floor, 185/187 Princess Street, Mumbai- 400002, Maharashtra, India
PAN.:	AAAFL8838P
Subsidiaries:	Pristine Chemicals Private Limited, India (CIN: U99999MH1992PTC066428)

CAPITAL STRUCTURE

As on 29.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5460000	Equity Shares	Rs.10/- each	Rs. 54.600 Millions
800	Preference Share	Rs.500/- each	Rs. 0.400 Million
	Total		Rs. 55.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
5074700	Equity Shares	Rs.10/- each	Rs. 50.747 Millions
	Forteited Equity Shares		Rs. 0.179 Millions
	Total		Rs. 50.926 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		50.926	50.926	50.976
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		38.259	29.046	69.065
4] (Accumulated Losses)		0.000	0.000	(47.893)
NETWORTH		89.185	79.972	72.148
LOAN FUNDS
1] Secured Loans		132.705	80.128	55.984
2] Unsecured Loans		38.573	14.219	14.894
TOTAL BORROWING		171.278	94.347	70.878
DEFERRED TAX LIABILITIES
TOTAL		260.463	174.319	143.026
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		83.812	65.712	49.734
Capital work-in-progress		50.389	7.684	0.000
INVESTMENT		0.017	0.017	0.017
DEFERREX TAX ASSETS		1.110	0.390	1.455
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	117.901	62.808	57.211
	Sundry Debtors	63.240	39.692	31.962
	Cash & Bank Balances	25.747	19.506	10.706
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	25.874	28.395	28.908
Total Current Assets		232.762	150.401	128.787
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	94.421	40.800	29.287
	Other Current Liabilities	9.656	7.912	5.837
	Provisions	3.550	1.173	1.843
Total Current Liabilities		107.627	49.885	36.967
Net Current Assets		125.135	100.516	91.820
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		260.463	174.319	149.026

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	282.383	260.254	274.779
		Other Income	49.762	31.056	27.121
		TOTAL (A)	332.145	291.310	301.900
Less	EXPENSES
		Consumption material changes inventories	205.166	181.577
		Manufacturing services costs	39.132	34.015
		Employee related expenses	31.299	21.481
		Administrative selling other expenses	18.011	19.179
		TOTAL (B)	293.608	256.252	251.296
Less	PROFIT/LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		38.537	35.058	50.604
Less	FINANCIAL EXPENSES (D)		17.967	13.339	16.908
	PROFIT/LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20.570	21.719	33.696
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.435	7.640	5.675
	PROFIT/LOSS BEFORE TAX (E-F) (G)		10.135	14.079	28.021
Less	TAX (H)		0.921	6.204	12.359
	PROFIT/LOSS AFTER TAX (G-H) (I)		9.214	7.875	15.662
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(40.069)	(47.894)	(63.556)
Less	APPROPRIATIONS
		Transfer to General Reserve	NA	0.050	0.000
	BALANCE CARRIED TO THE B/S		NA	(40.069)	(47.894)
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	210.465	201.543	NA
	TOTAL EARNINGS		210.465	201.543	NA
	IMPORTS
		Raw Materials	2.530	18.591	NA
		Capital Goods	18.980	0.000	NA
	TOTAL IMPORTS		21.510	18.591	NA
	Earnings/Loss Per Share (Rs.)		1.82	1.55	3.09

Particulars	31.03.2012
Sales Turnover (Approximately)	660.000 (Stated Multi Filament Production)

The above information has been parted by Mr. Shekar – Accounts Manager

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.77	2.70	5.18
Net Profit Margin (PBT/Sales)	(%)	3.58	5.40	10.19
Return on Total Assets (PBT/Total Assets}	(%)	4.35	9.30	21.75
Return on Investment (ROI) (PBT/Networth)		0.11	0.18	0.39
Debt Equity Ratio (Total Liability/Networth)		1.20	0.62	0.51
Current Ratio (Current Asset/Current Liability)		2.16	3.01	3.48

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	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	Yes

MANAGEMENT DISCUSSION And ANALYSIS REPORT

(a) Industrial Structure and Development

The INR 140 bn. flexible bulk packaging industry that includes woven sacks, leno bags, wrapping fabric and flexible intermediate bulk container (FIBC) is growing at over 20% with FIBC containers expected to grow three fold in the next 5 years riding an increased industrial production and a shift toward higher-value containers offering enhanced performance and supply chain efficiency. In fact, the global slowdown has been an opportunity for the Indian FIBC manufacturers as the production cuts by the companies in Europe and USA has resulted in the sourcing shifting to India adding an important factor to the growth story.

Flexible intermediate Bulk Containers (FIBC) industry is very capable and highly developed. India manufacturers and the present output of the Indian FIBC industry is 125,000 MT per year valued at about Rs.1,350 crores. India has registered growth of 20% over the last 10 years. Domestic demand in India is valued at about Rs.30 crores per annum. The country is a large player in the international FIBC business and ranks behind only China in the global supply scenario. The India FIBC industry exports over 95% of its output.

The $500 billion global packaging industry is multi-technology, multi product and multi process industry. The company is focused on the $5 Billion FIBC segment. The FIBC industry is set to grow at about 10% globally and 13-15% per annum domestically over the next five years basically on account of growing demand for FIBC in end-use industry and growing acceptance of FIBC over other forms of packaging.

The Company manufactures FIBC Bags and woven sacks. More than 80% of the Company’s turnover comprises of exports.

Global Demand for FlBC

Indian Economy:

The Indian economy, on the back of improved agricultural output, strong private consumption, robust investment, and a pick-up in exports, has rebounded strongly with a GDP growth of 8.6 per cent in 2010-11. However, inflation has emerged as a major concern. While the GDP has shown a slight increase during the year 2010-11 as compared to the year 2009-10, the overall expectations of attaining the double digit GDP growth is still eluding India. The Ministry of Finance indicates that a growth of 9% is expected during the year 2011-12. Taking into consideration the continued tightening of monetary policy and further escalation in global oil prices, it is expected that India will be able to achieve a GDP growth rate of 8 to 8.5% during the financial year 2011-12. The Indian manufacturing industry had registered an overall growth of only 7.8% during April-February 2010-11 as against 10% seen during April-February 2009-10. The increase in inflation from 8.31% in February 2011 to 8.98% in March 2011, will affect the performance of most companies. The high interest rate regime is a compromise for high growth and not enough is being done to control inflation through supply side interventions. India needs to go towards a more balanced interest rate regime aligned to sustain the pace of growth.

60% of the domestic FIBC demand is due to the petrochemical and mineral industries. The petrochemical industry is expected to be one of the fastest growing end-use segments for FIBCs.

Packing materials made from textiles include wrapping fabric, polyolefin woven sacks, hessian (commonly known as jute) bags and FIBCs. Industries that predominantly use packaging textiles are increasingly switching to FIBC as it offers benefits over the hessian bags, such as lower cost, better protection of contents, ease in procurement of the required polymer grades and more convenient handling. Further, FIBCs are finding newer applications such as UN bags (for hazardous goods) and clean room bags (used for food products such as milk powder, starch, spices and bulk drugs). These are a small but growing proportion of the total domestic FIBC consumption.

(b) Review of Operations

The Company exports FIBC bags mainly to buyers from European and Scandinavian/American countries. The volatile Euro / Dollar, which remained so for the major part of the year under review and did not stabilize at all, affected the export sales realization. This had an adverse impact on the profit margins. The Company earned a lower pre-tax profit of Rs.998.300 Millions as against Rs.12.528 Millions of the corresponding previous year.

Jumbo Bags being a labour oriented product, It requires more labour and work space for production. During the year under review, the Company imported Multifilament Yarn Plant and successfully commenced production of Multifilament Yarn. Currently, major production is utilized for in-house consumption. As a result of which, purchase at higher rates have stopped. The Company has also started selling in small quantities and we will sell more in second half of 2011

Export Recognition Award And Certification

It gives immense pleasure to inform their stakeholders that the Company has received an Award from the State Government of Maharashtra for appreciation towards export achievement in respect of plastic products for the year 2009-2010.

On the Export performance of past three years the Director General of Foreign Trade (DGFT) issued a certificate of recognition, status holder as “ EXPORT HOUSE “ in the month of November, 2010.

(c) Future Prospects

The Company has successfully established its position in the export market, particularly in the European and Scandinavian / American countries. All out efforts are being made to penetrate more to the American market. The Company presently also exports to North America, but in smaller quantities.

The Company has already taken certain initiatives to induct newer cost-effective technology, thereby setting –up a level field to fight inundated competition.

The product mix the backdrop of better economic environment, is expected to result in augmenting sale revenue and enhancing market share.

(d) Opportunities, Threats and Challenges

India’s FIBC is an emerging market, projected growth is about 20%. FIBCs are used to pack variety of material but now in western countries, Building material and fertilizers account for some 60% of FIBC sale. Other materials being transported in FIBC are Plastic resin, Bio Gases cake mixes, Detergents, Bentonite and all powder chemicals.

The per capita consumption of plastics in India is far lower compared to the worldwide figure.

The Indian FIBC is competitive in price compared to other developed countries.

The important challenge for the Company is to remain competitive.

In the world market, China is a challenge but we can overcome. Availability of skilled worker is also a challenge.

(e) Internal Control System

The company believes in continuous improvement and constantly strives to optimize the control and monitoring systems. The Control and Monitoring Systems in place ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition, and all transactions are authorized, recorded and reported correctly. The Company has an appropriate internal control system for its various functions with the ultimate objective of improving the efficiency of operations, better financial management and compliance with all regulations and applicable laws. The Company has an Internal Audit cell and has also appointed an external Internal Auditor. All operating parameters are well defined and monitored periodically. The detailed internal audit reports are discussed at length at various levels and thereafter the said reports are also placed in the Audit Committee.

(e) Human Resource Development

The Company has always considered its human resources as an asset and is committed towards their development for continuous growth. The Company believes that the employees are central to its sustainable success and initiatives are taken to ascertain their levels of satisfaction and to ensure that employees’ morale and motivation are constantly improved. Industrial Relation have remained cordial throughout the year. Focus on training to enhance the skill-sets of employees in line with the business and market requirements continued during the year. Skill up-gradation as well as specialized psychological profile support programmes for enhancing the happiness quotient of employees was undertaken.

(f) Cautionary Statement

Certain statements in the ‘Management Discussion and Analysis’ section may be more then optimistic, and are as perceived in the present situation and are stated as required by relevant prescriptions. Many factors may affect the actual results, which could be different from what the Directors contemplated in respect of future performance and outlook.

Contingent Liabilities

a) MSEB Liability approx Rs.1.300 Millions (Previous Year Rs.1.300 Millions)

b) Central Excise Liability Rs. NIL (Previous Year Rs.0.500 Millions)

c) Letter of Credit of Rs.21.796 Millions (Previous Year Rs.14.996 Millions)

d) Interest on Rs.0.929 Millions approx on disputed lease finance

e) Bank Guarantee of Rs. NIL (Previous Year Rs.1.902 Millions)

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	L27100MH1970PLC014933
Name of the company	TEXPLAST INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	Gut No. 39/40, Village Nehroli, Taluka Wada, Thane – 421312, Maharashtra, India Email: accounts@texplast.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10063618
Type of charge	Immovable property
Particular of charge holder	Indian Overseas Bank, “Sadhana”, 378, L J Road, Mahim, Mumbai – 400016, Maharashtra, India Email: mahimbr@mummsco.iobnet.co.in
Nature of instrument creating charge	Deed of Seventh Extension of Equitable Mortgage.
Date of instrument Creating the charge	06.05.2011
Amount secured by the charge	Rs. 215.300 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest For Fresh Term Loan-5 of Rs.22.000 Millions: Base rate + 4.00% p.a. (i.e.) 13.50% at present. For Other Limits: No Changes from the existing terms. Terms of Repayment Term Loan (for Rs.22.000 Millions): Repayable in 60 monthly installments of Rs.0.366 Million each. Other Limits : No Changes from the existing terms. Margin Term Loan (for Rs. 22.000 Millions) : Construction - 40% : Machinery - 25% Other Limits : No Changes from the existing terms. Extent and Operation of the charge The charge is to operate as security, by way of first exclusive charge, for the due repayment of credit facilities aggregating to Rs.215.300 Millions (comprisement of which are given in the Annexure attached herewith) together with interests, additional interests, costs, charges, expenses and all other moneys payable by the Company to the Bank from time to time in terms of sanction.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Extension of Equitable Mortgage of the following immovable properties of the company : [1] Gut No.39 Hissa No.Paiki 2 acres, Nehroli Village, Wada Taluka and District Thane and Hissa No.Paiki 76.4 gunthas Nehroli Village, Wada Taluka and District Thane and [2] Gut No.40 admeasuring 1 acres 6.5 gunthas, Nehroli Village, Wada Taluka and District Thane. [3] Flat No.1301, admeasuring about 550 sq.ft. builtup area, on 13th floor in the building known as Surya Apartment Co-op. Housing Society Ltd., situated at 53, Bhulabhai Desai Road, Mumbai-400026. Bearing Plot No.760 of Malbar Hill, Cumballa Hill Division in Mumbai D Ward, lying and being in the Registration District and Sub-District of Mumbai City and Mumbai Suburban now in Greater Mumbai.
Date of instrument modifying the charge	20.11.2010
Particulars of the present modification	The amount secured by the charge has been enhanced from Rs.208.090 Millions to Rs.215.300 Millions.

TRADE REFERENCES

· Unipack

· Reliance

· IOCL

· Halfia

FIXED ASSETS

· Land (Owned)

· Building

· Plant and Machinery

· Electrical Installation

· Office Equipments

· Furniture and Fixture

· Computers

· Vehicles

WEBSITE DETAILS

THE COMPANY

The Texplast Group was established in 1971, as manufacturers of HDPE Woven Bags used for packaging of, Chemicals and Fertilizers

In 1989 Texplast was the foremost unit to have produced successfully the 'Jumbo Bag', an order (2000 bags of 1000 Kg) processed for a prominent Blue Chip Company.

Now from millennium onwards we have manufacturing capacity of 600,000 jumbo bags (500kg. To 1500kg capacity) per annum, and small bags manufacturing capacity of (10 to 50kg capacity bag) 6 million bags per annum.

The Company is headed competently by their Chairman and Managing Director Mr. Sukumar Shah, who having spent more than 30 years in the Plastics Industry enjoys the respect and admiration of all as an innovator and developer of Products and Services.

As appreciation of his credentials, he has been elected to the Governing Body of the Indian Institute of Packaging (India's Premier body for Packaging Development). A status bestowed, and represented by only the very best of prominent Indian blue chip Companies.

Texplast, under the stewardship of Mr. Shah, has in place, a team of motivated and competent executives. Each team member is, experts in their field, talented achievers, and managers of individual profit centers.

The core competence of the Group is based on, innovation, product specialization, quality standards of manufacturing, customer relationship, and impeccable pre and post sales service.

The Group has adhered to the standards necessary for ISO 9000 compliance and is in the advanced stage of getting certified in the very near future. Quality plans are in place and every member of the group is prepared to achieve at the earliest.

Texplast strongly believes in giving individual attention to customers in order to know them better. We believe in developing healthy relationship with you as an individual, and not only for your patronage. Our staff who are our assets believe in going all out in order to understand your needs and satisfy and make Texplast an extension of your Organization.

LOCATION AND INFRASTRUCTURE

FIBC plant is sprawling over 5 acres and has a covered area of 4000 Sq. Meters. is located 70 Kms from all seasoned ports - Mumbai and JNPT (Nhava Sheva) well connected by State Highway, at Nehroli, Wada, District – Thane

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.53.34
UK Pound	1	Rs.86.09
Euro	1	Rs.69.36

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		33

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.