MIRA INFORM REPORT

Report Date :

19.05.2012

IDENTIFICATION DETAILS

Name :	SAFEFLEX INTERNATIONAL LIMITED
Registered Office :	15, Jaijawan Scheme No 1, Tonk Road, Jaipur – 302017, Rajasthan, India
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	20.03.2006
Com. Reg. No.:	17-022242
Capital Investment / Paid-up Capital :	Rs.26.010 Millions
CIN No.: [Company Identification No.]	U25151RJ2006PLC022242
TAN No.: [Tax Deduction & Collection Account No.]	JPRS07103F
PAN No.: [Permanent Account No.]	AAJCS7201D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Quality Bulk Bags.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 750000
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 :	15, Jaijawan Scheme No 1, Tonk Road, Jaipur – 302017, Rajasthan, India
Tel. No.:	Not Available
Fax No.:	Not Available
E-Mail :	info@safeflex.org
Website :	www.safeflex.org
Corporate Office / Factory :	F 6-10, Sez, Phase-1, Sector 3, Pithampur, Dist. Dhar, 454775, Madhya Pradesh, India
Tel. No.:	91-7292417000

DIRECTORS

As on 30.09.2011

Name :

Mr. Akhilesh Agrawal

Designation :

Director

Address :

15, Jai Jawan Colony Scheme No 1, Tonk Road, Jaipur – 302017, Rajasthan, India

Date of Birth/Age :

18.10.1959

Date of Appointment :

20.03.2006

DIN No.:

01970540

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	U70101RJ2005PTC021108	WORTHWHILE BUILDING SOLUTIONS PRIVATE LIMITED	Director	9/8/2005	9/8/2005	29/09/2007	Active	NO
2	U25151RJ2006PLC022242	SAFEFLEX INTERNATIONAL LIMITED	Director	20/03/2006	20/03/2006	-	Active	NO
3	U45201RJ2008PTC027711	SAFE INFRACON PRIVATE LIMITED	Director	10/11/2008	10/11/2008	16/07/2009	Active	NO
4	U45402RJ2008PTC027708	SAFE INTERIORS PRIVATE LIMITED	Director	10/11/2008	10/11/2008	-	Active	NO
5	U45200MP2009PTC021810	MEWAD INFRASTRUCTURES PRIVATE LIMITED	Director	9/4/2009	9/4/2009	-	Active	NO
6	U45201RJ2010PTC031831	ATI HOME SOLUTIONS PRIVATE LIMITED	Director	17/05/2010	17/05/2010	-	Active	NO
7	U36998RJ2010PTC031830	ATI DECOR PRIVATE LIMITED	Director	17/05/2010	17/05/2010	-	Active	NO
8	U45201RJ2008PTC025893	SAFE INFRAPROJECTS PRIVATE LIMITED	Additional director	21/10/2011	21/10/2011	-	Active	NO

Name :

Mrs. Sunita Agrawal

Designation :

Whole Tim Director

Address :

77, Ashish Nagar, Knadiya Road, Indore – 452016, Madhya Pradesh, India

Date of Birth/Age :

06.07.1967

Date of Appointment :

20.03.2006

DIN No.:

00012414

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	U25151RJ2006PLC022242	SAFEFLEX INTERNATIONAL LIMITED	Director	20/03/2006	20/03/2006	-	Active	NO
2	U45201RJ2008PTC027711	SAFE INFRACON PRIVATE LIMITED	Director	10/11/2008	10/11/2008	16/07/2009	Active	NO
3	U45402RJ2008PTC027708	SAFE INTERIORS PRIVATE LIMITED	Director	10/11/2008	10/11/2008	-	Active	NO
4	U45200MP2009PTC021810	MEWAD INFRASTRUCTURES PRIVATE LIMITED	Director	9/4/2009	9/4/2009	-	Active	NO

Name :

Mr. Lalit Kumar Agrawal

Designation :

Director

Address :

3/ 204, Jawahar Nagar, Jaipur – 302004, Rajasthan, India

Date of Birth/Age :

11.06.1946

Date of Appointment :

20.03.2006

DIN No.:

01970578

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	U25151RJ2006PLC022242	SAFEFLEX INTERNATIONAL LIMITED	Director	20/03/2006	20/03/2006	-	Active	NO
2	U74210RJ2002PTC017485	THEME ENGINEERING SERVICES PRIVATE LIMITED	Director	15/07/2010	15/07/2010	-	Active	NO
3	U45201RJ2007PTC024289	SAMRIDHI BUILDDEV PRIVATE LIMITED	Director	29/08/2011	29/08/2011	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
V.K Agrawal	40000
Sunita Agrawal	764800
Pankaj Agrawal	42000
Jitesh Agrawal	278000
Anshul Agrawal	40000
Akhiesh Agrawal	486800
Archana Agrawal	24000
B. M. Agrawal	94000
Lalit Agrawal	32000
Laxmikant Agrawal	80000
Paras Mukadam	30000
Ramesh Chandra Khandelwal	6000
Mewad Infrastructure Private Limited, India	61000
Mewad Polymers Private Limited, India	170400
Safe Interiors Private Limited, India	432000
Realgold Trading Company Private Limited, India	20000
Total	2601000

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	26.27
Directors or relatives of Directors	64.58
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Quality Bulk Bags.

Products :

· Hygiene

· Fabric Styles

· Lifting Style

· Construction Style

· Filling Type

· Discharge Types

· Liner

· Special FIBCS

· Baffle Liner

Product Description	ITC Code
HDPE / PP Woven Sacks and Jumbo Bags	392321

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity
PP Bags / Fabric / Tape	MT	4800	4800

Particulars	Unit	Actual Production
Bags	Nos	2335725
Fabrics *	MT	49899
Lamination Film	Nos	302.57

* Semi Finished Goods

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

• ICICI Bank
• Axis Bank
• State Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Cash Credit Limit	18.086	4.208
Export Packing Credit Limit	37.788	24.988
Term Loan form Bank	26.574	33.584
Term loan form M.P.F.C.	60.654	72.755
Total	143.102	135.535
Nature of Security 1. Cash Credit Limits and Export Packing Credit Limits: Secured against first charge on the entire current assets of the company. Second charge over fixed assets of the company and personal guarantee of all the Directors. 2. Term Loan from Bank: Secured against first pari passu charge over fixed assets of the company, and Personal Guarantee of all the Directors. 3. Term Loan from M.P.F.C.: Secured against first pari passu charges over fixed assets of the company, and personal guarantee of all the Directors. (Rs. In Millions)
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Form Share Holders	5.765	11.370
Form Inter Corporate, Relative and Others	1.200	1.000
Total	6.965	12.370

Banking Relations :
Financial Institution :	Madhya Pradesh Financial Corporation, Capital Market Division, Navratan Bagh, Indore - 452001, Madhya Pradesh, India
Auditors :
Name :	R. C. Siroya and company Chartered Accountant
Address :	303, Blue Diamond Building, 17-18, Diamond Colony, Indore – 452001, Madhya Pradesh, India
Tel No.:	91-731-4225125
Mobile :	91-9826022889
Email :	slroyaca@rediffmail.com
PAN.:	AGTPS671G

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2601000	Equity Shares	Rs.10/- each	Rs.26.010 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		26.010	26.010	21.030
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		163.074	108.696	71.442
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		189.084	134.706	92.472
LOAN FUNDS
1] Secured Loans		143.102	135.535	64.018
2] Unsecured Loans		6.965	12.370	7.950
TOTAL BORROWING		150.067	147.905	71.968
DEFERRED TAX LIABILITIES		11.855	7.883	3.719
TOTAL		351.006	290.494	168.159
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		209.437	207.928	89.100
Capital work-in-progress		0.000	0.000	29.676
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	81.211	58.986	24.587
	Sundry Debtors	59.635	30.252	18.815
	Cash & Bank Balances	5.076	5.166	8.475
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	22.416	16.056	12.705
Total Current Assets		168.338	110.460	64.582
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	21.053	23.172	9.253
	Other Current Liabilities	6.583	5.836	6.381
	Provisions	0.000	0.000	0.000
Total Current Liabilities		27.636	29.008	15.634
Net Current Assets		140.702	81.452	48.948
MISCELLANEOUS EXPENSES		0.867	1.114	0.435
TOTAL		351.006	290.494	168.159

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	421.453	254.703	250.300
		Other Income	0.509	0.433	0.148
		TOTAL (A)	421.962	255.136	250.448
Less	EXPENSES
		Increase / Decrease in Stock	(14.060)	(18.531)	4.777
		Raw Material Consumed	238.540	155.717	117.181
		Payment to and Provision for Employees	27.038	28.122	27.442
		Manufacturing Expenses	58.038	33.507	25.566
		Administration Expenses	6.840	6.720	5.647
		Selling and Distribution Expenses	19.347	11.134	15.173
		Director Remuneration	0.480	0.360	0.240
		Preliminary and Deferred Revenue Expenses	0.248	0.248	0.062
		TOTAL (B)	336.470	217.277	196.088
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		85.492	37.859	54.360
Less	FINANCIAL EXPENSES (D)		16.362	9.027	8.533
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		69.130	28.832	45.827
Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.317	7.107	4.487
	PROFIT BEFORE TAX (E-F) (G)		58.813	21.725	41.340
Less	TAX (H)		4.435	4.390	1.082
	PROFIT AFTER TAX (G-H) (I)		54.378	17.335	40.258
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		64.656	47.321	7.063
	BALANCE CARRIED TO THE B/S		119.034	64.656	47.321
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	347.236	221.071	231.655
	TOTAL EARNINGS		347.236	221.071	231.655
	IMPORTS
		Raw Materials	42.020	83.605	86.716
	TOTAL IMPORTS		42.020	83.605	86.716
	Earnings Per Share (Rs.)		20.91	7.27	21.17

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	12.89	6.80	16.07
Net Profit Margin (PBT/Sales)	(%)	13.95	8.53	16.52
Return on Total Assets (PBT/Total Assets}	(%)	15.57	6.82	127.59
Return on Investment (ROI) (PBT/Networth)		0.31	0.16	0.45
Debt Equity Ratio (Total Liability/Networth)		0.94	1.31	0.95
Current Ratio (Current Asset/Current Liability)		6.09	3.81	4.13

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	No
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

OPERATION:

This was the successful year of company; the performance of the company was satisfactory. The Directors are taking steps to further enhance the turnover keeping the future goals and developments. Maximum turnover of the company comprising of Exports and it is expected to achieve further goals in coming years of operations. The turnover of the company increased from Rs.254.700 Millions to Rs.421.400 Millions and profit after tax increased from Rs.17.300 Millions to Rs.54.300 Millions due to increased turnover. The management is working hard to get the optimum benefit of the available resources and keeping the check on expenses

CONTINGENT LIABILITY

Rs. In Millions

Particular	31.03.2011
Letter of Credit Established (LC Discounting)	30.000
Forward Contract Exposure as on 31.03.2011	59.078
Bank Guarantee issued as on 31.03.2011	0.300

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U25151RJ2006PLC022242
Name of the company	SAFEFLEX INTERNATIONAL LIMITED
Address of the registered office or of the principal place of business in India of the company	15, Jaijawan Scheme No 1, Tonk Road, Jaipur – 302017, Rajasthan, India info@safeflex.org
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10158949
Type of charge	Immovable property
Particular of charge holder	Madhya Pradesh Financial Corporation, Capital Market Division, Navratan Bagh, Indore - 452001, Madhya Pradesh, India capmkt@yahoo.com
Nature of instrument creating charge	Memorandum of Entry for Equitable Mortgage Inter – Sw pari Passue Agreement.
Date of instrument Creating the charge	25.01.2012
Amount secured by the charge	Rs.363.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per agreement and sanction letter. Terms of Repayment As per agreement and sanction letter. Margin As per agreement and sanction letter. Extent and Operation of the charge Equitable mortgage of immovable proerty of company situated at 1) 808-G and 808-H, Sector Iii, Industrial Area, Pithampur, Dhar 2) F6-F10, Sez, Sector-Iii, Industrial Area, Pithampur, District Dhar. Others Freehold Properties At Khasra No 168/1/5, 168/1/6, 168/1/7, 168/1/8 , 165/2 And 165/8, Ph No 25, At Village Bicholi Hapsi, Indore and Land Situated at Plot No 38-Fa, Sector-F, Scheme No 94, Ring Road, Indore. For Total Term Loan of Rs.363.000 Millions (Conprises of Term Loans of Rs.185.000 Millions From MPFC, Rs.100.000 Millions From State Bank of India and Rs.78.000 Millions From Axis Bank.)
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Equitable Mortgage of Immovable Proerty of Company Situated At 808-G and 808-H, Sector Iii, Industrial Area, Pithampur, Dhar.] Equitable Mortgage of Immovable Proerty of Company Situated at F6-F10, Sez, Sector-Iii, Industrial Area, Pithampur, District Dhar.
Date of instrument modifying the charge	19.10.2011
Particulars of the present modification	Creation of Equitable Mortgage for the Total Term Loan of Rs.363.000 Millions MPFC : Rs.185.000 Millions Axis Bank : Rs.78.000 Millions State Bank of India : Rs.100.000 Millions

Fixed Assets

· Leasehold Land

· Building

· Plant and Machinery

· Furniture / Fixture

· Office Equipment

· Vehicle

· Computer

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.54.88
UK Pound	1	Rs.86.46
Euro	1	Rs.69.49

INFORMATION DETAILS

Report Prepared by :

NTH

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	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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.