MIRA INFORM REPORT

Report Date :

07.11.2012

IDENTIFICATION DETAILS

Name :	Balson Polyplast Private LimiteD
Registered Office :	104, Royal Complex Dhebar Road, Bhutkhana Chowk, Rajkot – 360002, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	13.10.1999
Com. Reg. No.:	036712
Capital Investment / Paid-up Capital :	Rs.4.911 Millions
CIN No.: [Company Identification No.]	U17110GJ1999PTC036712
TAN No.: [Tax Deduction & Collection Account No.]	RKTB00050B
PAN No.: [Permanent Account No.]	AABCB2434K
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Drip Irrigation System, Sprinkler Irrigation System, etc
No. of Employees :	40 (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 127984
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a 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 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.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	SE 2B
Rating Explanation	Performance capacity is high and the financial strength is moderate.
Date	17.11.2011

RBI DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Ramesh
Designation :	Accounts Manager
Contact No.:	91-2827-253121
Date :	06.11.2012

LOCATIONS

Registered Office :	104, Royal Complex Dhebar Road, Bhutkhana Chowk, Rajkot – 360002, Gujarat, India
Tel. No.:	91-281-2228156
Fax No.:	91-281-2240972
E-Mail :	balsonpolyplast@yahoo.co.in
Location :	Owned

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Jamanbhai Vithhalbhai Baldha
Designation :	Director
Address :	A-7, Alpa Avenue University Road, Rajkot – 360005, Gujarat, India
Date of Appointment :	13.10.1999
DIN No.:	00127953
Name :	Mr. Kishorebhai Vithhalbhai Baldha
Designation :	Director
Address :	Raj 1 – Jyoti Nagar, B/H 10C Quarter, Kalawad Road, Rajkot – 360005, Gujarat, India
Date of Appointment :	13.10.1999
DIN No.:	00127956
Name :	Mr. Rameshchandra Vithhalbhai Baldha
Designation :	Director
Address :	5 – Nehrunagar Society, Nana Mahuva Road, Rajkot – 360004, Gujarat, India
Date of Appointment :	13.10.1999
DIN No.:	00127959
Name :	Mr. Vipulbhai Dhirubhai Pansuria
Designation :	Director
Address :	20-A, Alap Haritage Kalawad Road, Rajkot – 360004, Gujarat, India
Date of Appointment :	13.10.1999
DIN No.:	00127955
Name :	Mr. Lalitbhai Jasavjibhai Vaghasia
Designation :	Director
Address :	F-3, New Nirita Park Society – 1 Opposite Gurukul Driven Road, Ahmedabad – 380001, Gujarat, India
Date of Appointment :	13.10.1999
DIN No.:	00132592
Name :	Mr. Ashokbhai Arjunbhai Vaghasia
Designation :	Director
Address :	B-30 Om Nagar Part B, Near Patel Boarding Road, Mavdi Plot, Rajkot – 360004, Gujarat, India
Date of Appointment :	13.10.1999
DIN No.:	00127958

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Jamanbhai Vithhalbhai Baldha	10890
Kishorebhai Vithhalbhai Baldha	5779
Ashokbhai Arjunbhai Vaghasia	5556
Vipulbhai Dhirubhai Pansuria	11112
Kalpeshbhai Vaghasia	1000
Rameshbhai Dobaria	5556
Lalitbhai Vaghasia	1222
Jamanbhai Vithhalbhai Baldha HUF	800
Induben Baldha	800
Rameshbhai Dobaria HUF	800
Madhuben Dobaria	800
Kishorebhai Baldha HUF	800
Bhavnaben Baldha	800
Ashokbhai A Vaghasiya	800
Bhavnaben Vaghasiya	800
Vipulbhai Dhirubhai Pansuria HUF	800
Jayshriben Pansuria	800
Total	49115

AS ON 29.09.2012

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Drip Irrigation System, Sprinkler Irrigation System, etc
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Suppliers :

Reliance Industries Limited, Shapar

Customers :

Viratra Trading Co, Jodhpur (Mr. Lonkaranji)

No. of Employees :

40 (Approximately)

Bankers :

Indian Bank, Rajkot Branch, Toral, Subhash Road,, Rajkot - 360001, Gujarat, India

Union Bank, Rajkot Branch

Facilities :

Cash Credit – Rs.40.000 Millions

SECURED LOAN	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
From Banks	20.845	14.912
From Others	0.000	0.000
TOTAL	20.845	14.912

Foot Note :

1. Secured loans from bank consists of Car loan, Building Loan and Machinery Loan Loans are secured by hypothecation of Car and Plant and Machinery and other movables and Equitable Mortgage of land and Building. Rate of Interest 12.75% Terms of Repayment: Total Monthly Instalment of Rs. 0.417 Million plus interest Period and amount of default – Nil

2. Cash Credit from Bankis secured by way of first charge by hypothecation of all stocks, receivables and other movables of the company and guarantee by all the Directors of the Company

UNSECURED LOAN	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
From Directors	19.182	14.309
TOTAL	19.182	14.309

Foot Note :

1. No terms and conditions are specified regarding interest and its repayment In respect of Unsecured Loans from related parties

Banking Relations :	--
Auditors :
Name :	P.Ghanshyam and Co. Chartered Accountant
Address :	605, Shilp Tower, Tagore Road, Rajkot – 360002, Gujarat, India
Associates/Subsidiaries :	NA

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs.100/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
49115	Equity Shares	Rs.100/- each	Rs.4.911 Millions

(c)	Par Value Per Share	100
(d)	Number of Shares outstanding at the beginning of the reporting period	49115
	Number of Shares outstanding at the end of the reporting period	49115
(e)	the rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and repayment of capital	0
(f)	Shares in respect of each class in the company held by its holding company or altimate holding company.	0
(g)	Shareholders holding more than 5% Shares :
	Names of Shareholders :	No. of Shares held %
	Jamanbhai Baldha	10890 22,17
	Kishorbhai Baldha	5779 11.77
	Ashokbhai Vaghasiya	5556 11.31
	Vipulbhai Pansuriya	11112 22.62
	Rameshbhai Dobariya	5556 11.31
		38893
(h)	Shares reserved for issue under option and contracts/ commitments for sale of shares/disinvestment.	0
(i)	For the period of 5 years immediately preceding the date as at Balance Sheet is prepared :
	- Aggregate number and class of shares allotted as fully paid up
	pursuant to contract(s) without payment being received in cash	0
	- Aggregate number and class of shares allotted as fully
	paid up by way of bonus shares	0
	- Aggregate number and class of shares bought back	0
G)	Terms of any securities convertible into equity/preference
	shares issued along with the earliest date of conversion in descending order starting from the farthest such date	0
(k)	Calls unpaid	0
(l)	Forfeited shares	0

FINANCIAL DATA

[all figures are in Rupees Millions]

Particulars	31.03.2012	31.03.2011
Sales Turnover (Approximately)	370.000	210.000

Expected Sales (2012-2013) : Rs.500.000 Millions

The above information has been parted by Mr. Ramesh (Accounts Manager)

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		4.911	4.911	4.911
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.085	19.523	15.658
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		31.996	24.434	20.569
LOAN FUNDS
1] Secured Loans		35.695	22.372	18.565
2] Unsecured Loans		19.182	14.309	10.285
TOTAL BORROWING		54.877	36.681	28.850
DEFERRED TAX LIABILITIES		2.666	0.601	0.539
TOTAL		89.539	61.716	49.958
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		57.466	28.822	25.173
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	14.537	14.863	20.792
	Sundry Debtors	61.915	40.040	43.055
	Cash & Bank Balances	12.372	5.856	5.636
	Other Current Assets	14.965	17.560	0.000
	Loans & Advances	0.000	0.000	8.269
Total Current Assets		103.789	78.319	77.752
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	42.696	31.942	41.511
	Other Current Liabilities	24.327	10.573	10.312
	Provisions	4.693	2.910	1.144
Total Current Liabilities		71.716	45.425	52.967
Net Current Assets		32.073	32.894	24.785
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		89.539	61.716	49.958

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Revenue from Operations	379.302	234.695	212.959
Less	EXPENSES		NA	NA	NA
	PROFIT BEFORE TAX		11.485	5.332	4.034
Less	TAX		3.922	1.516	1.408
	PROFIT AFTER TAX		7.563	3.816	2.626
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		9.447	5.582	2.955
	BALANCE CARRIED TO THE B/S		17.009	9.395	5.581
	IMPORTS
		Stores & Spares	1.617	3.510	NA
		Capital Goods	12.375	0.000	NA
	TOTAL IMPORTS		13.992	3.510	NA

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.99	1.62	1.23
Net Profit Margin (PBT/Sales)	(%)	NA	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	7.12	4.97	3.92
Return on Investment (ROI) (PBT/Networth)		0.36	0.22	0.19
Debt Equity Ratio (Total Liability/Networth)		3.95	3.36	3.98
Current Ratio (Current Asset/Current Liability)		1.45	1.72	1.47

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

PARTICULARS	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Sundry Creditors
For Goods	16.213	14.835	41.511
For Expenses	26.483	17.107

Sr. No.	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	No
17]	Major suppliers	Yes
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
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	No
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

FORM 8:

Corporate identity number of the company	U17110GJ1999PTC036712
Name of the company	BALSON POLYPLAST PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	104 Royal Complex Dhebarroad, Bhutkhana Chowk, Rajkot – 360002, Gujarat, India
This form is for	Modification of charge
Type of charge	Immovable Property
Particular of charge holder	Indian Bank
Nature of instrument creating charge	Memorandum of Deposit of Title Deeds.
Date of instrument Creating the charge	22/06/2012
Amount secured by the charge	Rs.135.285 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest 2.00%(spread) p.a. over Bank's Base Rate plus tenor premium of 0.50% p.a., current base rate 10.50% p.a., effective rate 13.00% p.a. with quarterly rests payable at monthly intervals. Terms of Repayment Open Cash Credit [OCC] repayable on demand Bank Guarantee : Subject to review of every year. Existing Term Loans : As per original schedule Fresh Term Loan :As per original schedule Margin Stock : 25.00% Book Debt : 40.00% LC : 10% BG : 10% MTL I : 50, MTL - II:,III and IV : 25% MTL :Machinery: 25% Extent and Operation of the charge The Charge shall remain in operation till full repayment of all outstanding dues to the bank with interest, or if any other charges covered under the total finance of Rs.1352.85 Lac granted by the Bank to the borrower. Others Nature of Facility : (Rs. In Millions) OCC 40.000 (Sub limit LC) 20.000 MTL- I (Building) 1.896* MTL- II (Machinery) 5.289* MTL- IV (Machinery) 7.100* MTL- V (Machinery) 11.000 Bank Guarantee 70.000 Total 135.285 *Reduced Balance
Short particulars of the property charged	1. Factory Land and Building situated on the land adm.Sq.Mts.1672-18 of N.A.Plot No.2/C&3 of Revenue Survey No.270 paikee of village Shapar Veraval,Tal.Kotda Sangani,Dist.Rajkot in the state of Gujarat. 2. Factory Land and Building situated on the land adm.Sq.Mts.648-04 of Sub-Plot No.1-B of N.A.Plot No.4 of Revenue Survey No.270 paikee of village Shapar Veraval,Tal.Kotda Sangani, Dist. Rajkot in the-state of Gujarat. 3. Constructed Commercial Shop No.4 situated on the first floor of Commercial Complex known as " Royal Complex" in Rajkot City Survey No. 62,64&65 paikee in the land of 1298-59 Sq.Mts. in City Survey- Ward No. 8 having carpet area adm. 298-04 Sq, Ft. equivalent to 27-29 Sq. Mts. Sub-Dist. Rajkot in the state of Gujarat.
Date of instrument modifying the charge	19/06/2012
Particulars of the present modification	Total facilities of Rs. Rs.135.285 Millions granted by the Bank is now further secured by immovable property as mentioned in point no. 15( I ) (II) and (III) as above. Details of facilities, Open Cash Credit Rs.4.000 Millions (Sub limit - Import L/C of Rs.2.000 Millions), MTL- I (Building): Rs 18.960 Millions, MTL- II (Machinery) : Rs 52.890 Millions, MTL- III (Vehicle) :, MTL- IV (Machinery): Rs 7.100 Millions, MTL- V (Machinery): Rs 1.100 Millions and BG of Rs. 70.000 Millions.

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 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.54.59
UK Pound	1	Rs.87.31
Euro	1	Rs.69.86

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	SDA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	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		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.