MIRA INFORM REPORT

Report Date :

25.05.2012

IDENTIFICATION DETAILS

Name :	DE CONVERTER INDIA PRIVATE LIMITED
Registered Office :	8/2 Gurudas Dutta, Garden Lane, Calcutta 700067, West Bengal
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.03.1994
Com. Reg. No.:	062232
Capital Investment / Paid-up Capital :	Rs. 14.098 millions
CIN No.: [Company Identification No.]	U74940WB1994PTC062232
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Printed and Laminated Flexible Film.
No. of Employees :	90 Approximately

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 112304
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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. Kirtha Nath
Designation :	Accountant
Contact No.:	91-33-26716799
Date :	24.05.2012

LOCATIONS

Registered Office :	8/2 Gurudas Dutta, Garden Lane, Calcutta 700067, West Bengal, India
E-Mail :	deconverter@vsnl.com
Location :	Owned
Factory+ Corporate Office :	E- Tone Complex, JL – 14, NH – 2, Bally Durgapur, Abhay Nagar, Post Samabay Pally, Poilce Station, Pally, Howrah 711205, West Bengal, India
Tel. No.:	91-33-26716799
Fax No.:	91-33-26716799

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Rajib Kundu
Designation :	Director
Date of Birth/Age :	12.01.1976
Date of Appointment :	11.03.1994
Name :	Mrs. Dipti Kundu
Designation :	Director
Date of Birth/Age :	26.06.1956
Date of Appointment :	11.03.1994
Name :	Mrs. Kanchan Kundu
Designation :	Director
Date of Birth/Age :	17.04.1956
Date of Appointment :	07.09.2001
Name :	Mr. Sushanta Kundu
Designation :	Director
Date of Birth/Age :	21.12.1950
Date of Appointment :	20.10.2009
Name :	Mr. Sandip Kundu
Designation :	Director
Date of Birth/Age :	01.11.1982
Date of Appointment :	31.03.2008
Name :	Mr. Abhijit Kundu
Designation :	Director
Date of Birth/Age :	07.09.1982
Date of Appointment :	24.08.2009

KEY EXECUTIVES

Name :	Mr. Kirthanath
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Sushanta Kundu	44881
Neena Kundu	19793
Dipti Kundu	154808
Rajib Kundu	30713
Sanchita Kundu	34382
Kanchan Kundu	291230
Somprakash Chakraborti	20800
Papia Chakraborti	27833
Kalyan Kundu	152667
Ranjana Kundu	8750
K B Combines Private Limited, India	12500
Leonard Vanijya Private Limited, India	12500
Total	810857

AS ON 30.09.2011

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		3.08
Directors or relatives of directors		90.92
Other top fifty shareholders		6.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Printed and Laminated Flexible Film.
Exports :
Products :	Printed and Laminated Flexible Film.
Countries :	Bangladesh, Nepal
Imports :
Products :	Machine
Countries :	China
Terms :
Selling :	Credit (30 Days)
Purchasing :	Credit (60 Days)

GENERAL INFORMATION

Suppliers :

Henkel

Customers :

· Manufacturer

· J D Marketing Private Limited

No. of Employees :

90 Approximately

Bankers :

· Bank of Baroda, Sodepur Branch, Station Road, Sodepur, Kolkata 700110, West Bengal, India

· Bank of Baroda, Patipukur Branch, 847 Laketown, Kolkata 700089, West Bengal, India

· State Bank of India, Kolkata

Facilities :

Cash Credit Rs. 40.000 millions (Bank of Baroda)

Rs. In Millions

SECURED LOAN	31.03.2011	31.03.2010
BANK OF BARODA (hypothecation of Stock and Book Debts)
Cash Credit A/C (CC - 00400500000021)	30.695	23.699
Term Loan (00400600000725) (Hypothecation Against Machinery)	7.282	9.675
Term Loan (00400600000982) (Hypothecation Against Machinery)	2.592	3.231
Term Loan (00400600001218) (Hypothecation Against Machinery)	11.433	6.086
Term Loan (00400600001442) (Hypothecation Against Machinery)	4.282	0.000
HDFC Bank (hypothecation against Car)	0.237	0.361
Total	56.521	43.052
UNSECURED LOAN
Kanchan Kundu	0.303	0.505
Dipti Kundu	1.000	0.018
Partha Sarathi Kundu	0.000	0.900
Cholamandalam DBSFinance Limited	0.000	0.229
Loan from Citi Bank	0.000	0.210
Magma Finance Corporation Limited	2.443	0.000
Idea Commercial Private Limited	1.000	0.000
Ullas Kundu	1.000	0.000
Total	5.746	1.862

Banking Relations :	--
Auditors :
Name :	S P Chatterjee and Company Chartered Accountant
Address :	10 Old Post Office Street, Room No. 15A, Kolkata 700001, West Bengal, India
Sister Concern :	· NLK Engineering, Kolkata · Kundu Udyog · Polyprint Cottage Industries Private Limited · Kalyan Confectionery Private Limited · R K International · Eastern Agencies

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1500000	Equity Shares	Rs. 10 each	Rs.15.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
810857	Equity Shares	Rs. 10 each	Rs.8.108 millions
	Out of 810857 equity shares, 520123 equity shares of Rs. 10 each (Including premium of Rs.2.320 million on Equity Shares which has been accounted for under the head "Security Premium Account") 290734 Equity Shares of Rs.10/- each were allotted otherwise than in cash pursuant to a scheme of Amalgamation approved by the Hon’le Kolkata High Court.
	Application Money Pending Allotment		Rs. 5.990 millions
			Rs. 14.098 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2012
Sales Turnover (Approximately)	350.000

Expected Sales (2012-2013) : Rs.400.000 millions

The above information has been parted by Mr. Kirtha Nath

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		8.108	8.108	8.108
2] Share Application Money		5.990	4.540	1.060
3] Reserves & Surplus		13.978	11.763	10.488
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		28.076	24.411	19.656
LOAN FUNDS
1] Secured Loans		56.521	43.052	29.555
2] Unsecured Loans		5.746	1.862	3.368
TOTAL BORROWING		62.267	44.914	32.923
DEFERRED TAX LIABILITIES		0.975	1.245	1.200
TOTAL		91.318	70.570	53.779
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		41.598	30.928	29.044
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	29.962	18.144	24.417
	Sundry Debtors	41.216	30.343	28.043
	Cash & Bank Balances	7.925	0.957	0.704
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	8.340	8.554	11.841
Total Current Assets		87.443	57.998	65.005
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	32.798	16.221	37.429
	Other Current Liabilities	2.647	1.118	2.083
	Provisions	2.278	1.017	0.758
Total Current Liabilities		37.723	18.356	40.270
Net Current Assets		49.720	39.642	24.735
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		91.318	70.570	53.779

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	299.383	194.935	152.429
		Other Income	1.653	1.904	1.521
		TOTAL (A)	301.036	196.839	153.950
Less	EXPENSES
		Selling and Distribution Expenses
		Office Expenses	285.560	186.746	144.776
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	285.560	186.746	144.776
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.476	10.093	9.174
Less	FINANCIAL EXPENSES (D)		5.644	4.412	4.424
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.832	5.681	4.750
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.626	3.743	3.328
	PROFIT BEFORE TAX (E-F) (G)		3.206	1.938	1.422
Less	TAX (H)		0.991	0.618	0.313
	PROFIT AFTER TAX (G-H) (I)		2.215	1.320	1.109
	Earnings Per Share (Rs.)		2.73	--	--

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.73	0.67	0.72
Net Profit Margin (PBT/Sales)	(%)	1.07	0.99	0.93
Return on Total Assets (PBT/Total Assets}	(%)	2.48	2.17	1.51
Return on Investment (ROI) (PBT/Networth)		0.11	0.07	0.07
Debt Equity Ratio (Total Liability/Networth)		3.59	2.64	3.78
Current Ratio (Current Asset/Current Liability)		2.31	3.15	1.61

LOCAL AGENCY FURTHER INFORMATION

OPERATIONAL REVIEW AND FUTURE PROSPECTS:

The company has taken a number of measures during the year under review to ensure that it accelerates its growth momentum going forward. Major steps include business restructuring, product integration, capacity expansion, technology upgradation and talent management. It has set out a multi-year journey to achieve best-in-class sustainable development through conservation of resources deployed, environment protection, dust / waste management and recycling, employee engagement and welfare measures. The ability to understand, develop and successful application of new technologies and upgraded plant and machineries are the key differentiator and has contributed to moving towards a dominant position in the sectors it operate. Sales has increased from approx Rs. 200 millions to approx Rs. 300 millions i.e. nearly 50% upturn. The synergies of the above measures has pushed up PBT from Rs. 1.900 millions to Rs. 3.200 million after fully absorbing higher depreciation and incremental salary / wage payments. The Directors are hopeful for continuous growth prospects in near future.

CAPITAL EXPENDITURES:

As at 31st March, 2011 gross fixed assets stood at Rs. 60.411 millions as compared to Rs. 43.114 millions in the previous year. The book value of net assets were Rs. 41.599 millions.

Additions during the year amounted to Rs. 17.756 millions most of which were for acquisition of machineries.

FIXED ASSETS:

· Land

· Good Will

· Building

· Machinery

· Electric Equipments

· Wall Clock

· Laboratory Equipments

· Air Conditioner

· Type Writer

· Furniture and Fixture

· Cycle

· Office Equipments

· Fax Machine

· Computer

· Delivery Van

· Motor Car

· Telephone EPABX

· Mobile Phone

· Tools and Equipments

· Chain Host Lift

· Cylinder

FORM 8

Corporate identity number of the company	U74940WB1994PTC062232
Name of the company	DE CONVERTER INDIA PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	8/2 Gurudas Dutta, Garden Lane, Calcutta 700067, West Bengal, India
This form is for	Modification of charge
Type of charge	Immovable property Any Interest in immovable property Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Bank of Baroda, Sodepur Branch, Station Road, Sodepur, Kolkata 700110, West Bengal, India Email: sodepu@bankofbaroda.com
Nature of instrument creating charge	Three Supplemental Agreements for Hypothecation of Goods, Book Debts and Machinery respectively and Memorandum of Mortgage by Deposit of Title Deeds as and by way of extension created by the company
Date of instrument Creating the charge	14.12.2009
Amount secured by the charge	Rs. 51.536 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest On term Loan at BPLR @ 12% subject to change with credit rating. On cash credit facilities @ 0.50% below BPLR of 12% i.e. 11.50%. Commission on BG as per bank's service charges guidelines. Terms of repayment Term Loan - II of Rs. 10.800 millions - 16 EQI of Rs. 0.675 millions commencing from Nov 09 to Jan 10 Quarter Term Loan - III of Rs. 3.536 millions - 20 EQI of Rs. 0.182 millions commencing from Oct 09 to Dec 09 quarter Term Loan - IV of Rs. 11.500 millions- 20 EQI of Rs. 0.575 millions commencing after 12 month of disbursement Cash Credit - On demand BG facilities - n.a. Margin Term Loan - II of Rs. 10.800 millions - 45% of project cost. Term Loan - III of Rs. 3.536 millions - 25.14% of project cost Term Loan - IV of Rs. 11.500 millions - 39.09% of project cost Cash Credit - 25% of stock & book debts BG facilities - 10% cash margin. Extent and operation of the charge Extension of charge on all fixed assets of the company including equitable mortgage of factory land and building, hypothecation of plant and machineries and other assets acquired by the company or in the process of implementation of the project at Bally, Durgapur, NH-2, P.O.- Samabaypally, Howrah - 711 205.
Short particulars of the property charged (Including location of the property)	All fixed assets of the company including equitable mortgage of factory land and building, stock, book debts, hypothecation of plant and machineries and other assets of the project at Bally, Durgapur, NH-2, P.O.-Samabaypally, Howrah - 711 205
Date of instrument modifying the charge	16.09.2008
Particulars of the present modification	By this modification of the Principal Agreement as varied by the Supplemental Agreements the overall credit limits has been increased to Rs. 51.536 millions comprising of Term Loan - II of Rs. 10.800 millions Term Loan - III of Rs. 3.536 millions Term Loan - IV of Rs. 11.500 millions Cash Credit - Rs. 24.500 millions and Bank Guarantee facilities of Rs. 1.200 millions

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	Yes
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	Yes
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 involved in	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

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.55.73
UK Pound	1	Rs.87.26
Euro	1	Rs.69.84

INFORMATION DETAILS

Information Gathered by :	SBA
Report Prepared by :	PRL

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		29

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.