MIRA INFORM REPORT

Report Date :

12.11.2012

IDENTIFICATION DETAILS

Name :	WELPACK INDUSTRIES LIMITED
Registered Office :	87, Government Industrial Estate, Ganesh Nagar, Charkop, Kandivali (West), Mumbai – 400 067, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.11.2002
Com. Reg. No.:	11-138024
Capital Investment / Paid-up Capital :	Rs.14.798 Millions
CIN No.: [Company Identification No.]	U25200MH2002PLC138024
TAN No.: [Tax Deduction & Collection Account No.]	MUMW02087B
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of wide range of shopping bags, rolls, zip lock bags, flat bags, etc.
No. of Employees :	370 (Approximately) (20 In Office + 350 in Factory)

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 326000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The financial detail for the current year is missing from Government Department. However, from the previous year record company having a satisfactory track. Trade relations are reported to be fair. Business is active. Payments are reported to be unknown. The company can be considered for business dealings with slight caution.

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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ 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.

LOCATIONS

Registered Office/ Corporate Office :	87, Government Industrial Estate, Ganesh Nagar, Charkop, Kandivali (West), Mumbai – 400 067, Maharashtra, India
Tel. No.:	91-22-28678111
Fax No.:	91-22-28695035
E-Mail :	deepak@welpackind.com info@welpackind.com
Website :	www.welpackind.com
Area :	1200 Sq. ft.
Location :	Rented
Factory :	Survey No.192/2, Village Saily, Near Castrol, Silvassa - 396 230, Union Territory of Dadra and Nagar Haveli, India
Tel. No.:	91-260-2630310
Fax No.:	91-260-2644509
Area :	1.7 Acres
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :

Mr. Arvindkumar Ratilal Sanghvi

Designation :

Director

Address :

5, Vandana Adarsh Society Road, Opposite Carmel High School, Marve Road, Malad (West), Mumbai – 400 064, Maharashtra, India

Date of Birth/Age :

04.08.1951

Date of Appointment :

28.11.2002

DIN No.:

01380557

Name :

Mr. Nimesh Arvindkumar Sanghvi

Designation :

Director

Address :

5, Vandana Adarsh Society Road, Opposite Carmel High School, Marve Road, Malad (West), Mumbai – 400 064, Maharashtra, India

Date of Birth/Age :

03.11.1974

Date of Appointment :

20.07.2006

DIN No.:

00832314

Name :

Mr. Vikram Arvindkumar Sanghvi

Designation :

Director

Address :

5, Vandana Opposite Carmel School Adarsh Soc Road, Off Marve Road, Malad (West) , Mumbai – 400 064, Maharashtra, India

Date of Birth/Age :

01.01.1977

Date of Appointment :

30.09.2010

DIN No.:

02212285

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U25200MH2002PLC138024	WELPACK INDUSTRIES LIMITED	Director	30/09/2010	01/04/2010	-	Active	NO

Name :

Ms. Rekha Arvind Sanghvi

Designation :

Director

Address :

5, Vandana Opposite Carmel School Adarsh Soc Road, Off Marve Road, Malad (West) , Mumbai – 400 064, Maharashtra, India

Date of Birth/Age :

24.10.1951

Date of Appointment :

30.09.2010

DIN No.:

03049166

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U25200MH2002PLC138024	WELPACK INDUSTRIES LIMITED	Director	30/09/2010	01/04/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Equity Shares [Having Voting Rights]
Arvind Sanghvi	243800
Vikram Sanghvi	54739
Nimesh Sanghavi	46500
Hetal N Sanghvi	75810
Arvind Sanghvi [HUF]	30000
Priti Sanghavi	57000
Rekha Sanghvi	89261
Total	597110

Names of Shareholders	No. of Shares
Equity Shares [Having Non-Voting Rights]
Arvind Sanghvi	158000
Rekha Sanghvi	59500
Nimesh Sanghavi	165674
Hetal N Sanghvi	79690
Vikram Sanghvi	164435
Arvind Sanghvi [HUF]	118343
Manju Vijayraj Mehta	15000
Vijayraj Mehta	25000

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	95.61
Other top fifty shareholders	4.39
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Exporter and Importer of wide range of shopping bags, rolls, zip lock bags, flat bags, etc.

Products :

Product Description	ITC Code
Plastic Bags	3923100

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Plastic Bags, Tubing and Sheets	MT	13000	5943.32

GENERAL INFORMATION

No. of Employees :

370 (Approximately) (20 In Office + 350 in Factory)

Bankers :

• HDFC Bank Limited, HDFC House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India
• Central Bank of India, J.B. Nagar Branch, Andheri Kurla Road, Mumbai – 400 059, Maharashtra, India

Facilities :

Secured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Long Term Loans Term Loan (Secured against Wind Mill and guarenteed by Directors jointly and severally.)	9.520	11.881
Short Term Loans Cash Credit/Working Capital Loan from Banks (Secured by hypothecation and Pledge of Stock and First Charge on immovable properties and guaranteed by Directors jointly and severally.)	43.408	39.110
Total	52.928	50.991

Unsecured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Financial interest	1.609	5.987
Total	1.609	5.987

Banking Relations :	--
Auditors :
Name :	J.D. Shah and Associates Chartered Accountants
Address :	14, Garud Chamber, 57/59, Kazi Saiyed Street, Musjid Bunder, Mumbai - 400 053, Maharashtra, India
Tel. No.:	91-22-23421044/ 23461044
Mobile No.:	91-9820094761/ 9322803666
E-Mail :	jashah_ca@yahoo.co.in ca_jashah@yahoo.co.in
PAN No.:	AAKPS7937A
Enterprises in which Relative of KMP has a significant influence :	Sanghvi Polymers Rayan Plast Stationery Station

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
1479752	Equity Shares	Rs.10/- each	Rs.14.798 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		14.798	21.221	20.371
2] Share Application Money		12.500	13.900	10.700
3] Reserves & Surplus		54.323	36.542	13.670
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		81.621	71.663	44.741
LOAN FUNDS
1] Secured Loans		52.928	50.991	117.391
2] Unsecured Loans		1.609	5.987	11.297
TOTAL BORROWING		54.537	56.978	128.688
DEFERRED TAX LIABILITIES		3.878	4.483	5.421
TOTAL		140.036	133.124	178.850
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		57.420	51.057	48.932
Capital work-in-progress		2.890	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.726	23.601	25.297
	Sundry Debtors	56.040	63.824	40.090
	Cash & Bank Balances	8.631	6.833	8.470
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	35.655	23.179	124.217
Total Current Assets		131.052	117.437	198.074
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	30.509	19.205	55.997
	Other Current Liabilities	11.842	11.115	6.012
	Provisions	8.975	5.050	6.147
Total Current Liabilities		51.326	35.370	68.156
Net Current Assets		79.726	82.067	129.918
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		140.036	133.124	178.850

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	462.714	421.845	393.577
		Other Income	0.488	1.179	0.441
		TOTAL	463.202	423.024	394.018
Less	EXPENSES
		Increase /Decrease in Finished Goods	1.666	(10.442)	0.000
		Cost of goods Manufactured	414.783	388.030	364.628
		Administration and other Expenses	7.454	5.380	6.252
		Selling and Distribution Expenses	3.049	2.375	5.202
		TOTAL	426.952	385.343	376.082
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		36.250	37.681	17.936
Less	FINANCIAL EXPENSES		7.152	12.345	34.542
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		29.098	25.336	(16.606)
Less/ Add	DEPRECIATION/ AMORTISATION		7.996	6.552	5.072
	Extraordinary Items		0.000	(2.541)	(9.914)
	PROFIT / (LOSS) BEFORE TAX		21.102	16.243	(31.592)
Less	TAX		3.321	1.021	0.383
	PROFIT / (LOSS) AFTER TAX		17.781	15.222	(31.975)
	EARNINGS IN FOREIGN CURRENCY		0.000	0.000	1.305
	IMPORTS
		Raw Materials	53.614	31.636	44.514
		Capital Goods	3.821	3.953	0.104
	TOTAL IMPORTS		57.435	35.589	44.618
	Earnings/ (Loss) Per Share (Rs.)		12.02	7.18	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.84	3.61	(8.12)
Net Profit Margin (PBT/Sales)	(%)	4.56	3.85	(8.03)
Return on Total Assets (PBT/Total Assets}	(%)	11.20	9.64	(12.79)
Return on Investment (ROI) (PBT/Networth)		0.25	0.23	(0.71)
Debt Equity Ratio (Total Liability/Networth)		1.30	1.29	4.40
Current Ratio (Current Asset/Current Liability)		2.55	3.32	2.91

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	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	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	Yes
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 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	No
30) Major Shareholders, if available	Yes
31) Date of Birth of Proprietor/Partner/Director, if available	Yes
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

NATURE OF OPERATION:

Subject, a public limited company, is engaged primarily in the business of “Manufacturing”, Trading and Exporting of plastic bags (plain and printed nature)

Apart from the above the company has initiated a wind mill project for generation and sale of power, power generated through the windmill is sold to Maharashtra state Electricity Distribution Company Limited at agreed rate of 3.80 per kwh. Company has initiated this operation two years back and the plant of the company is situated at Ektare (Panchpatta) village, Ahmednagar.

CONTINGENT LIABILITIES:

(Rs. in millions)

Particulars	31.03.2011	31.03.2010
Bank Guarantee given	7.000	2.150

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U25200MH2002PLC138024
Name of the company	WELPACK INDUSTRIES LIMITED
Address of the registered office or of the principal place of business in India of the company	87, Government Industrial Estate, Ganesh Nagar, Charkop, Kandivali (West), Mumbai – 400 067, Maharashtra, India E-Mail: info@welpackind.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80021145
Type of charge	· Immovable property · Book debts · Movable property (not being pledge) · Floating charge
Particular of charge holder	CIN NO.:L65920MH1994PLC080618 HDFC Bank, HDFC House, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India E-Mail: RBBform8@hdfcbank.com
Nature of instrument creating charge	a] Supplementary Letter of Hypothecation. b] Memorandum Recording Past Transaction of Creation of Mortgage by Delivery of Title Deeds. (Collectively constitute a single charge for Rs.185.500 Millions).
Date of instrument Creating the charge	05.03.2012
Amount secured by the charge	Rs.185.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment Working capital facility shall be payable on demand. Term loan facility shall be repayable in suitable installments. Margin As may be stipulated by the Bank from time to time. Extent and Operation of the charge [a] Hypothecation by way of First Charge on Company's Stock and Book Debts, Plant and Machinery and Vehicles etc., to secure as a continuing security as stated in Column No.15 below, [b] The Company accorded and gave oral consent to Bank to continue to hold and retain the title deeds (by way of Constructive delivery) in respect of its immovable properties, as security for repayment of Rs.185.500 Millions together with principal, interest, liquidated damages, costs, charges and expenses.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Stock-in-trade, consisting of raw materials, goods in process of manufacturing finished goods, and other merchandise whatsoever being movable properties, All the Debts, that is, all the book debts, outstandings, monies receivables, claims, bills, invoice documents, contracts, guarantees, and rights which are now The movable plant and machinery and vehicles, which may now or at any time hereafter belong to the Borrower or come to the Borrowers disposal any of the Immovable property being lying and situated at Survey No.192/2, Village Saily Union Territory of Dadra and Nagar Haveli.
Date of instrument modifying the charge	10.10.2011
Particulars of the present modification	The charge shall now stand increased from Rs.155.500 Millions to Rs.185.500 Millions in favour of the Bank against the security of stocks, book debts, plant and machinery and vehicles and immovable properties being lying and situate at Survey No.192/2, Village Saily Union Territory of Dadra and Nagar Haveli.

FIXED ASSETS:

v Factory Gala

v Plant and Machinery

v Electric Installation

v Loft

v Land

v Factory Building

v Computer System

v Fire Extinguisher

v Telephone Equipment

v Dies and Moulds

v Motor Car

v Motor Cycle

v Cycle

v Refrigerator

v Water Cooler

v Furniture and Fixture

v Windmill

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.54.34
UK Pound	1	Rs.86.97
Euro	1	Rs.69.43

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		33

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.