MIRA INFORM REPORT

Report Date :

25.05.2012

IDENTIFICATION DETAILS

Name :	PURITY FLEXPACK LIMITED
Registered Office :	At and Post Vanseti, Near Baskahalol, Panchmahal-389350, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	30.03.1988
Com. Reg. No.:	04-010514
Capital Investment / Paid-up Capital :	Rs.10.734 Millions
CIN No.: [Company Identification No.]	L25200GJ1988PLC010514
IEC No.:	0888029411
TAN No.: [Tax Deduction & Collection Account No.]	BRDP01294G
PAN No.: [Permanent Account No.]	AABCP1859N
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on stock exchange.
Line of Business :	Manufacturer and Exporter of Flexible Packaging Materials.
No. of Employees :	80 [Approximately]

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 130000
Status :	Satisfactory
Payment Behaviour :	Slow but 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 slow but correct. 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

INFORMATION DECLINED BY

Name :	Mr. Jayesh
Designation :	Manager
Contact No.:	91-9879508744
Date :	15.02.2012

LOCATIONS

Registered Office/ Factory :	At and Post Vanseti, Near Baskahalol, Panchmahal-389350, Gujarat, India
Tel. No.:	91-2676-247138/247138/247096
Mobile No.:	91-9879508744 [Mr. Jayesh]
Fax No.:	91-2676-247138
E-Mail :	anil@purityflexpack.com sales@purityflexpack.com
Website :	http://www.purityflexpack.com
Area :	24000 sq. ft
Location:	Owned
Corporate Office :	2-B, Kirti Tower Tilak Road, Vadodara-390001, Gujarat, India
Tel. No.:	91-265-2429108/2421089/2427740
Fax No.:	91-265-2427734
E-Mail :	marketing@purityflexpack.com sales@purityflexpack.com anil@purityflexpack.com

DIRECTORS

As on 31.03.2011

Name :	Mr. Harshad Bhatt
Designation :	Director
Date of Birth/Age :	57 Years
Qualification :	Graduate
Name :	Mr. Daxesh Patel
Designation :	Director
Date of Birth/Age :	47 Years
Qualification :	Graduate
Name :	Ms. Kokila Patel
Designation :	Director
Date of Birth/Age :	53 Years
Qualification :	MA
Name :	Mr. Manish Baxi
Designation :	Director
Date of Birth/Age :	45 Years
Qualification :	Graduate
Name :	Mr. Kunal Patel
Designation :	Director
Date of Birth/Age :	25 Years
Qualification :	MBA
Name :	Mr. Darshak Sheth
Designation :	Director
Date of Birth/Age :	38 Years
Qualification :	Graduate
Name :	Mr. Nilesh Patel
Designation :	Additional Director
Date of Birth/Age :	40 Years
Qualification :	Engineer

KEY EXECUTIVES

Name :	Mr. Jayesh
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2012

Category of Shareholder	Total No. of Shares	Total Shareholding as a % of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	507,587	47.29
Sub Total	507,587	47.29
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	507,587	47.29
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	540	0.05
Sub Total	540	0.05
(2) Non-Institutions
Bodies Corporate	5,224	0.49
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	560,049	52.18
Sub Total	565,273	52.66
Total Public shareholding (B)	565,813	52.71
Total (A)+(B)	1,073,400	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	1,073,400	-

Shareholding of securities (including shares, warrants, convertible securities) of persons belonging to the category “Promoter and Promoter Group”

Sr.	Name of the Shareholder	Details of Shares held
No.		No. of Shares held	As a % of
			grand total
			(A)+(B)+(C)
1	Anil B Patel	152,918	14.25
2	Kokilaben A Patel	173,129	16.13
3	Kunal A Patel	52,180	4.86
4	Sudhaben Bhanubhai Patel	1,770	0.16
5	Vaishali A Patel	111,116	10.35
6	Harshad Bhatt	10,267	0.96
7	Naimish Bhatt	450	0.04
8	Ranjay Bhatt	450	0.04
9	Sanjay Bhatt	450	0.04
10	Varshaben Bhatt	1,092	0.10
11	Ankit R Amin	3,765	0.35
	Total	507,587	47.29

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Flexible Packaging Materials.

Products :

PRODUCT DESCRIPTION	ITEM CODE
Printed / Plain Paper / Poly	480710.00
Printed / Plain Polyester / Alu Foil / Polyethylene Laminates	760720.09
Printed / Plain Polyester / Polyethylene Laminates	392069.00

Exports :

Products :

Flexible Packaging Materials

Countries :

· Africa

· UK

· Australia

· Egypt

Imports :

Products :

Plastic Materials

Countries :

· Singapore

· Saudi

Terms :

Selling :

Depends

Purchasing :

Depends

PRODUCTION STATUS [AS ON 31.03.2011]

Capacity per annum Item	As Certified by the Management Paper - Poly, Pet and Foil ( Kgs)
Licensed Capacity	NA
Installed Capacity	NA
Extrusion	1200000
Adhesive Lamination	700000
Blown Film Extrusion	900000

GENERAL INFORMATION

Customers :

Others [Manufacturer]

No. of Employees :

80 [Approximately]

Bankers :

Bank of Baroda, Jetalpur Branch, Vadodara, Gujarat, India

Facilities :

SECURED LOAN	As on 31.03.2011 [Rs. In millions]	As on 31.03.2010 [Rs. In millions]
From Bank of Baroda
Term Loan
i) Term Loan	0.750	2.250
ii) Term Loan	1.456	2.332
iii) Term Loan	2.235	4.324
iv) Term Loan	2.172	4.081
v) Term Loan (Against Hypothecation of Plant and Machinery and Charge on all other fixed and current assets)	15.898	0.000
Working Capital
i) Cash Credit	44.276	40.063
ii) Packing Credit	3.984	5.572
iii) Bill Discounting (Against Equitable Mortgage of immovable Property of the Company , Hypothecation of Stock of Raw Materials and Finished Goods, Stores and Spares and Stock in Process and Book debts)	10.216	9.970
From Other Banks
i) From HDFC Bank (Against hypothecation of Vehicle)	1.776	1.572
ii) From Axis Bank (Against hypothecation of Vehicle)	0.695	0.458
Total	83.458	70.622
UNSECURED LOAN
From Directors	2.437	2.107
From Others	1.302	2.447
From HDFC against guarantee of Director	0.121	0.825
From Tata against guarantee of Director	3.000	0.000
From Kotak against guarantee of Director	2.911	0.000
Total	9.771	5.379

Banking Relations :	--
Auditors :
Name :	Shah Mehta and Bakshi Chartered Accountants
Address :	Vadodara, Gujarat, India

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs.10/- each	Rs.60.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1073400	Equity Shares	Rs.10/- each	Rs.10.734 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		10.734	10.734	10.734
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		23.538	17.983	12.580
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		34.272	28.717	23.314
LOAN FUNDS
1] Secured Loans		83.458	70.622	64.852
2] Unsecured Loans		9.771	5.379	8.025
TOTAL BORROWING		93.229	76.001	72.877
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		127.501	104.718	96.191
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		76.023	61.469	62.408
Capital work-in-progress		0.918	0.323	0.000
INVESTMENT		0.130	0.130	0.130
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	51.672	40.654	43.260
	Sundry Debtors	39.662	32.991	28.922
	Cash & Bank Balances	0.757	1.214	1.388
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	15.690	9.795	12.204
Total Current Assets		107.781	84.654	85.774
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	55.614	40.093	50.307
	Other Current Liabilities	0.154	0.559	1.095
	Provisions	1.583	1.247	0.899
Total Current Liabilities		57.351	41.899	52.301
Net Current Assets		50.430	42.755	33.473
MISCELLANEOUS EXPENSES		0.000	0.041	0.180
TOTAL		127.501	104.718	96.191

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	230.621	193.264	193.950
		Other Income	0.738	1.021	1.583
		TOTAL (A)	231.359	194.285	195.533
Less	EXPENSES
		Manufacturing Expenses	207.610	163.286	163.805
		Administrative and Selling Expenses	9.780	7.969	6.904
		Loss on Sale of Assets	1.041	0.558	0.000
		Miscellaneous Expenses Written Off	0.041	0.139	0.139
		Increase and Decrease in Finished Stocks	(7.278)	2.941	6.001
		TOTAL (B)	211.194	174.893	176.849
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.165	19.392	18.684
Less	FINANCIAL EXPENSES (D)		9.263	9.645	12.009
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.902	9.747	6.675
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.116	4.544	4.388
	PROFIT BEFORE TAX (E-F) (G)		5.786	5.203	2.287
Less	TAX (H)		0.231	0.000	0.086
	PROFIT AFTER TAX (G-H) (I)		5.555	5.203	2.201
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		13.112	7.909	5.708
	BALANCE CARRIED TO THE B/S		18.667	13.112	7.909
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	41.446	53.883	102.185
	IMPORTS
		Raw Materials	15.239	15.925	7.490
	Earnings Per Share (Rs.)		5.19	4.85	2.02

QUARTERLY RESULTS

PARTICULARS	30.06.2011	31.12.2011
Type	2^nd Quarter	3^rd Quarter
Net Sales	76.920	89.050
Total Expenditure	72.380	80.780
PBIDT (Excl OI)	4.540	8.270
Other Income	0.110	0.070
Operating Profit	4.650	8.340
Interest	2.080	2.890
PBDT	2.570	5.450
Depreciation	1.250	1.280
Profit Before Tax	1.320	4.170
Profit After Tax	1.320	4.170
Net Profit	1.320	4.170

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	2.40	2.68	1.13
Net Profit Margin (PBT/Sales)	(%)	2.51	2.69	1.18
Return on Total Assets (PBT/Total Assets}	(%)	3.15	3.56	1.54
Return on Investment (ROI) (PBT/Networth)		0.17	0.18	0.10
Debt Equity Ratio (Total Liability/Networth)		4.39	4.11	5.37
Current Ratio (Current Asset/Current Liability)		1.88	2.02	1.64

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Construction of the firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoters background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of contact person	Yes
Turnover of firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	Yes
Capital the business	Yes
Details of sister concerns	No
Major Suppliers	No
Major Customers	No
Payment Terms	Yes
Export / Import Details [If Applicable]	Yes
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	No

DETAILS OF SUNDRY CREDITORS:

Particulars	31.03.2011 (Rs. in millions)	31.03.2010 (Rs. in millions)	31.03.2009 (Rs. in millions)
Sundry Creditors	55.614	40.093	50.307

YEAR IN RETROSPECT AND FUTURE OUTLOOK:

The Sixth year in succession when the company has been making profits year after year and it is hoped that this trend will continue in future year’s subject however to unforeseen circumstances. Gross Total Sales for the year was Rs. 248.773 millions as against that of Rs.204.315 millions of the previous year. The Net Profits amounted to Rs. 5.880 millions as compared to Rs.5.203 millions of the previous year. The Export Sales during the year under report amounted to Rs. 41.446 millions as against to Rs. 53.883 millions for the previous year. The company is thus consolidating its position and it is hoped that the same position will continue for future years. It is noteworthy that our products have been well accepted by the Overseas Customers. It is very likely that the increase in export sales will change the great scenario in the life of the company.

FIXED ASSETS:

· Leasehold Land

· Factory Building

· Administrative Building

· Plant and Machinery

· Electrical Installation

· Office Equipments

· Fire fighting Equipments

· Furniture and Fixtures

· Vehicles

· Laboratory Equipments

· Library (Books)

· 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.56.29
UK Pound	1	Rs.88.26
Euro	1	Rs.70.82

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.