MIRA INFORM REPORT

Report Date :

16.05.2012

IDENTIFICATION DETAILS

Name :	SPP POLY PACK PRIVATE LIMITED
Registered Office :	35 A, IDA, Kattedan, Hyderabad– 500077, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.10.2003
Com. Reg. No.:	01-041899
Capital Investment / Paid-up Capital :	Rs. 6.500 Millions
CIN No.: [Company Identification No.]	U25209AP2003PTC041899
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Poly Bags in LDPE, HMHDPE and PP.
No. of Employees :	50 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 120000
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

LOCATIONS

Registered Office/ Administrative Office/ Factory :	35 A and C, IDA, Kattedan, Hyderabad – 500 077, Andhra Pradesh, India
Tel. No.:	91-40-24361018
Fax No.:	91-40-24360218
E-Mail :	narendra@slpindia.com info@spppoly.com racoauditors@yhaoo.com
Website:	http://www.spppoly.com

DIRECTORS

As on 30.09.2011

Name :

Mr. Suresh Chandra Lahoti

Designation :

Director

Address :

8-3-167/D/248, Kalyan Nagar, Hyderabad – 500 038, Andhra Pradesh, India

Date of Birth/Age :

12.01.1954

Qualification :

Graduate

Date of Appointment :

20.10.2003

DIN No.:

01848247

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	U80101AP1994PLC017887	MAHESH VIDYA BHAVAN LIMITED	Director	24/02/1999	24/02/1999	29/09/2011	Active	NO
2	U25209AP2003PTC041899	SPP POLY PACK PRIVATE LIMITED	Director	20/10/2003	20/10/2003	-	Active	NO

Name :

Mr. Naresh Kumar Rathi

Designation :

Director

Address :

15-7-297, Begum Bazar, Hyderabad – 500 012, Andhra Pradesh, India

Date of Birth/Age :

02.08.1963

Qualification :

Graduate

Date of Appointment :

20.10.2003

DIN No.:

01848262

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Naresh Kumar Rathi	287500
Jawaharlal Rathi	4000
Govindlal Rathi	32000
Susheela Devi Rathi	2000
Balkishan Rathi	5000
Smt. Sarla B Rathi	2000
Surendra Kumar Rathi	2000
Smt. Rajni Rathi	2000
Smt. Usha Rathi	2000
Sharad Kumar Rathi	2000
Smt Anuradha Rathi	12000
Umesh Kumar Rathi	33500
Manish Kumar Rathi	2000
Smt. Aarti Rathi	32000
Sunhl Kumar Rathi	2000
Smt. Madhu Rathi	32000
Sudhir Kumar Rathi	2000
Smt. Sonali Rathi	2000
Rohit Rathi	42000
Surendra Stock Brokers, India	10000
Rahul Stocks Private Limited, India	10000
Suresh Chandra Lahoti	98000
Smt. Swethai Lahoti	3000
Smt. Manju Devi Lahoti	3000
Shailesh Lahoti	4000
Smt. Sheetal Lahoti	3000
Sarvesh Lahoti	3000
Saurabh Lahoti	12000
Suresh Chandra Lahoti HUF	2000
Shailesh Lahoti HUF	2000
Total	650000

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2011

Category	Percentage
Bodies corporate	3.08
Directors or relatives of Directors	96.92
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Poly Bags in LDPE, HMHDPE and PP.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	31.03.2011
Actual Production	3444750.680 Kgs

GENERAL INFORMATION

No. of Employees :

50 (Approximately)

Bankers :

Axis Bank, 6-3-879/B, Greenlands Road,, Begumpet,, Hyderabad – 500 016, Andhra Pradesh, India

Facilities :

(Rs. in Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Term Loans:
HDFC Bank Loan	0.233	0.000
Axis Bank Term Loan – 32268970	1.239	0.826
Working Capital Loans:
Axis Bank Cash Credit	42.943	44.255
Axis Bank LC	6.143	10.517
Total	50.558	55.598
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Balkishan Rathi HUF	0.028	0.024
Gopal Lal Rathi HUF	0.028	0.023
Govind lal Rathi	0.195	0.167
Madhu Rathi	0.674	0.427
Sonali Rathi	0.674	0.427
Surendra Kumar Rathi HUF	0.196	0.168
Madhushree Enterprises Private Limited	0.024	0.052
Manish Kumar Rathi	0.012	0.009
Mukund lal Rathi HUF	0.184	0.158
Ayodhya devi Rathi	0.828	0.000
Jawaharlal Rathi	0.000	0.713
Jawaharlal Rathi HUF	0.029	0.024
Suresh Chandra Lahoti	0.520	1.873
Sheetal Lahoti	1.554	1.080
Naresh Kumar Rathi	0.485	0.202
Sudhir Kumar Rathi	0.158	0.030
Sales Tax Deferment	4.201	4.201
Shailesh Lahoti HUF	0.282	0.246
Total	10.072	9.824

Banking Relations :	--
Auditors :
Name :	S.A. Thakkar Associates Chartered Accountants
Address :	Flat No.401, 1-10-1/12, Manbhum Prestige, Ashok Nagar, Hyderabad – 500 077, Andhra Pradesh, India
PAN.:	AATPT4533A

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
650000	Equity Shares	Rs.10/- each	Rs.6.500 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		6.500	6.500	6.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		24.380	18.812	14.203
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		30.880	25.312	20.703
LOAN FUNDS
1] Secured Loans		50.558	55.598	44.259
2] Unsecured Loans		10.072	9.824	8.573
TOTAL BORROWING		60.630	65.422	52.832
DEFERRED TAX LIABILITIES		0.632	0.581	0.534
TOTAL		92.142	91.315	74.069
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		26.315	19.424	16.929
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	15.196	14.346	10.448
	Sundry Debtors	66.241	48.250	42.551
	Cash & Bank Balances	1.892	1.163	1.204
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	12.911	11.313	9.252
Total Current Assets		96.240	75.072	63.455
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	28.676	1.640	4.972
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	1.737	1.541	1.343
Total Current Liabilities		30.413	3.181	6.315
Net Current Assets		65.827	71.891	57.140
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		92.142	91.315	74.069

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	285.268	231.796	197.506
		Other Income	3.111	1.754	1.370
		TOTAL (A)	289.379	233.550	198.876
Less	EXPENSES
		Raw Material Consumed	235.873	189.289	159.703
		Payments to and for Employees	7.441	5.945	5.393
		Manufacturing Expenses	13.334	10.456	9.723
		Administration and Selling Expenses	12.710	10.922	8.766
		Increase/ Decrease in Closing Stock	0.047	(0.249)	(1.319)
		TOTAL (B)	269.405	216.363	182.266
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		19.974	17.187	16.610
Less	FINANCIAL EXPENSES (D)		8.734	7.772	8.737
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.240	9.415	7.873
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.167	2.726	2.282
	PROFIT BEFORE TAX (E-F) (G)		8.073	6.689	5.591
Less	TAX (H)		2.504	2.080	1.829
	PROFIT AFTER TAX (G-H) (I)		5.569	4.609	3.762
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		18.812	14.203	10.441
	BALANCE CARRIED TO THE B/S		24.381	18.812	14.203
	Earnings Per Share (Rs.)		8.57	NA	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.92	1.97	1.89
Net Profit Margin (PBT/Sales)	(%)	2.83	2.89	2.83
Return on Total Assets (PBT/Total Assets}	(%)	8.39	7.08	6.96
Return on Investment (ROI) (PBT/Networth)		0.26	0.26	0.27
Debt Equity Ratio (Total Liability/Networth)		0.98	0.12	0.31
Current Ratio (Current Asset/Current Liability)		3.16	23.60	10.05

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	No
10) Designation of contact person	No
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	No
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	--
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

CONTINGENT LIABILITY: (As on 31.03.2011)

Contingent liability not provided for on account of guarantee given by the Company to Axis Bank Limited for loans granted to group companies Srinath Rotopack Private Limited Rs.756.600 millions and Blend Colors Private Limited Rs.160.500 millions.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U25209AP2003PTC041899
Name of the company	SPP POLY PACK PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	35A, IDA, Kattedan, Hyderabad – 500 077, Andhra Pradesh, India E-Mail: narender@slpindia.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	90262938
Type of charge	· Book debts · Movable property (not being pledge)
Particular of charge holder	Axis Bank, 6-3-879/B, Greenlands Road,, Begumpet,, Hyderabad – 500 016, Andhra Pradesh, India E-Mail: BL.Sailaja@axisbank.com
Nature of instrument creating charge	Memorandum of Entry
Date of instrument Creating the charge	06/12/2010
Amount secured by the charge	Rs.55.950 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per Previous Sanction Letter Terms of Repayment As per Previous Sanction Letter Margin As per Previous Sanction Letter Extent and Operation of the charge Charge Operates as Security for total advances of Rs.55.950 millions.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Security: Charge on the entire current assets, present and future of the Company is no Change Collateral: i) Charge on the entire fixed assets, present and future along with leasehold as in point (ii). Lease hold property situated at Survey No.48, Ward No.6, Block No.8, Plot No.35, S.E.I.E, Katedan, Rajendra Nagar Municipality, Ranga Reddy District as per MOE
Particulars of the present modification	No change in limits, except inclusion of leasehold rights on the said property at 35, IDA Kattedan, Hyderabad and reduction of limits from Rs.60.450 millions to Rs.55.950 millions.

FIXED ASSETS:

· Computer System

· Machinery A/c

· Electronics Weighing Machine

· Furniture and Fitting

· Generator

· Vehicles

· Building A/c

· Air Conditioner

· Vacuum Cleaner

· Air Curtain

· Fire Extinguisher

· Cycle

· EPABX System

· Pallate Trolley

· Exhaust Fans

AS PER WEBSITE DETAILS

COMPANY PROFILE

Subject was established in 1991 as a Partnership concern with one extruder to tap the local poly bags market. Since then it has never looked back is now one of the biggest manufacturers of all kind of plain and printed poly bags. The company is today equipped with latest machineries capable of executing bulk orders for both domestic as well as exports.

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.53.84
UK Pound	1	Rs.86.72
Euro	1	Rs.69.17

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

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.