MIRA INFORM REPORT

Report Date :

24.09.2012

sIDENTIFICATION DETAILS

Name :	DYNAFLEX PRIVATE LIMITED
Registered Office :	12, Sampatrao Colony, R.C. Dutt Road, Vadodara – 390 005, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	19.06.1984
Com. Reg. No.:	04-007018
Capital Investment / Paid-up Capital :	Rs.3.750 Millions
CIN No.: [Company Identification No.]	U25200GJ1984PTC007018
IEC No.:	0889000824
TAN No.: [Tax Deduction & Collection Account No.]	BRDD00708B
PAN No.: [Permanent Account No.]	AAACD8084A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Plastic Carry Bags.
No. of Employees :	200 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

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

Maximum Credit Limit :	USD 238000
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.

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.

INFORMATION PARTED BY

Name :	Mr. Kailash Mishra
Designation :	Senior Accountant
Contact No.:	91-9724327025
Date :	24.09.2012

LOCATIONS

Registered Office :	12, Sampatrao Colony, R.C. Dutt Road, Vadodara – 390 005, Gujarat, India
Tel. No.:	91-2676-247999/ 247166/ 247009 91-265-2336248/ 2340803
Mobile No.:	91-9724327025 (Mr. Kailash Mishra)
Fax No.:	91-2676-247066 91-265-2355281/ 2336248
E-Mail :	marketing@dynaflex.com ncv@dynaflex.in sid.vora@dynaflex.in accounts@dynaflex.com
Website :	http://www.dynaflex.co.in
Area :	2000 Sq ft
Location :	Owned
Factory :	Plot No.321, P.O. Baska, Baroda-Halol Express-way, Taluka-Halol, District Panchmahal - 389 350, Gujarat, India
Tel. No.:	91-2676-247999/ 247009
Fax No.:	91-2676-247066
E-Mail :	info@dynaflex.co.in
Area :	40000 sq. ft
Location :	Owned

DIRECTORS

As on 30.09.2011

Name :	Mr. Niranjan Chhotalal Vora
Designation :	Director
Address :	12, Sampatrao Colony, Vadodara – 390 005, Gujarat, India
Date of Birth :	06.04.1939
Qualification :	B.E. Mechanical
Date of Appointment :	19.06.1984
Voter ID No.:	GJ/22/148/447272
DIN No.:	01678272
Name :	Mr. Gaurav Niranjan Vora
Designation :	Director
Address :	12, Sampatrao Colony, Vadodara – 390 005, Gujarat, India
Date of Birth :	09.08.1973
Qualification :	B.A.
Date of Appointment :	02.09.1996
Voter ID No.:	GJ/22/148/447600
DIN No.:	01571664
Name :	Mr. Siddharth Niranjan Vora
Designation :	Director
Address :	12, Sampatrao Colony, Vadodara – 390 005, Gujarat, India
Date of Birth :	09.01.1976
Qualification :	MBA
Date of Appointment :	01.01.2000
Voter ID No.:	GJ/22/148/447427
DIN No.:	01678339

KEY EXECUTIVES

Name :	Mr. Kailash Mishra
Designation :	Senior Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Shobhna Vora Sudhir Vora	1935
Usha Vora Jitendra Vora	1550
Sudhir Vora Shobhna Vora	1190
Jitendra Vora Sudhir Vora	1920
Dhirendra Vora Sudha Vora	2360
Hansa Vora Niranjan Vora	3300
Sudha Vora Dhirendra Vora	3250
Shobhana Vora	4065
Sudha Vora	1875
Jitendra Vora	2755
Niranjan Vora	2625
Sudhir Vora	2850
Hansa Vora	1875
Usha Vora	1825
Dhirendra Vora	2625
Nitai Ghosh	800
Bishwanath Pal	700
Total	37500

As on 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Plastic Carry Bags.
Exports :
Products :	Plastic Carry Bags
Countries :	African Countries Russian Countries
Imports :
Products :	Raw Materials
Countries :	Saudi Arabia USA
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Suppliers :

v Reliance Industries Limited

Customers :

End Users

v Agrotech Foods Limited

No. of Employees :

200 (Approximately)

Bankers :

v HDFC Bank, Productivity House, Vadodara, Gujarat, India

v State Bank of India

v HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

v Axis Bank Limited

Facilities :

Cash Credit Rs.34.000 Millions (From HDFC Bank Limited)

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
HDFC Bank Term Loan (Secured against hypothecation of machinery, mortgage of factory shed and personal guarantee of all the directors)	0.000	0.033
HDFC Bank Term Loan (Secured against hypothecation of machinery, mortgage of factory shed and personal guarantee of all the directors)	0.873	2.039
Cash Credit Facility From HDFC Bank (Secured against hypothecation of stores, raw materials, finished goods and stock in process and personal guarantee of all the directors)	19.705	1.889
HDFC Bank Car Loan (Secured against hypothecation of Car)	0.412	0.814
Axis Bank Limited Car Loan (Secured against hypothecation of Car)	1.258	0.000
Total	22.248	4.775

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
From Directors	0.915	0.915
From Shareholders, relatives and others	9.245	14.025
Total	10.160	14.940

Banking Relations :	Satisfactory
Auditors :
Name :	Shah Sanghvi and Company Chartered Accountants
Address :	2, “Samarpan”, 26, Haribhakti Colony, Race Course Circle, Vadodara – 390 015, Gujarat, India
Tel. No.:	91-265-2337064
Fax No.:	91-265-2354386
E-Mail :	shahsanghvi@gmail.com
PAN No.:	AITPS7818Q
Associates/Subsidiaries :	XL Plastics Address: 303/2, Makarpura Industrial Estate, Vadodara – 390 010, Gujarat, India

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
40000	Equity Shares	Rs.100/- each	Rs.4.000 Millions
10000	12% Redeemable Cumulative Preference Shares	Rs.100/- each	Rs.1.000 Million
	Total		Rs.5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
37500	Equity Shares	Rs.100/- each	Rs.3.750 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		3.750	3.750	3.750
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		55.796	37.430	18.907
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		59.546	41.180	22.657
LOAN FUNDS
1] Secured Loans		22.248	4.775	14.587
2] Unsecured Loans		10.160	14.940	20.279
TOTAL BORROWING		32.408	19.715	34.866
DEFERRED TAX LIABILITIES		3.872	3.843	3.184
TOTAL		95.826	64.738	60.707
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		47.032	32.283	28.398
Capital work-in-progress		0.217	2.708	0.832
INVESTMENT		0.000	0.000	0.476
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.848	16.240	10.940
	Sundry Debtors	22.622	22.534	21.174
	Cash & Bank Balances	3.898	3.655	0.107
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	27.419	15.049	12.384
Total Current Assets		81.787	57.478	44.605
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	20.669	15.900	5.180
	Other Current Liabilities	1.949	2.001	1.243
	Provisions	10.592	9.830	7.181
Total Current Liabilities		33.210	27.731	13.604
Net Current Assets		48.577	29.747	31.001
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		95.826	64.738	60.707

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Net Sales	188.308	164.288	136.714
		Job Work		3.760	2.023
		Other Income		1.145	0.683
		TOTAL (A)	188.308 (Including Increase/ Decrease in stocks)	169.193	139.420
Less	EXPENSES
		Material Consumed	160.731	101.856	85.773
		Remuneration and Benefits to employees		3.858	3.052
		Manufacturing Expenses		18.695	18.357
		Administrative, selling and other expenses		9.446	5.913
		Increase /Decrease in stock		(1.021)	0.269
		TOTAL (B)	160.731 (including financial and depreciation)	132.834	113.364
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			36.359	26.056
Less	FINANCIAL EXPENSES (D)			3.265	4.516
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			33.094	21.540
Less/ Add	DEPRECIATION/ AMORTISATION (F)			4.404	3.410
	PROFIT BEFORE TAX (E-F) (G)		27.577	28.690	18.130
Less	TAX (H)		9.211	10.167	6.374
	PROFIT AFTER TAX (G-H) (I)		18.366	18.523	11.756
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		34.248	15.725	3.969
	BALANCE CARRIED TO THE B/S		52.614	34.248	15.725
	Earnings Per Share (Rs.)		489.76	493.95	313.49

Particulars	31.03.2012
Sales Turnover (Approximately)	212.900

Expected Sales (2011-2012): Rs.300.000 millions

The above information has been parted by Mr. Kailash Mishra (Senior Accountant).

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	9.75	10.95	8.43
Net Profit Margin (PBT/Sales)	(%)	NA	17.46	13.26
Return on Total Assets (PBT/Total Assets}	(%)	21.41	31.96	24.83
Return on Investment (ROI) (PBT/Networth)		0.46	0.70	0.80
Debt Equity Ratio (Total Liability/Networth)		1.10	1.15	2.14
Current Ratio (Current Asset/Current Liability)		2.46	2.07	3.28

LOCAL AGENCY FURTHER INFORMATION

Details of Sundry Creditors:

(Rs. in millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors	20.669	15.900	5.180
Total	20.669	15.900	5.180

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	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
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	Yes
34]	External Agency Rating, if available	No

OPERATIONS:

During the year, the sales and other income of company was Rs.188.308 Millions (Previous year Rs.170.214 Millions) which has increased but due to increased expenses Profit after tax is reduced to Rs.18.366 millions (Previous Year Rs.18.523 millions).

FORM 8

Corporate identity number of the company	U25200GJ1984PTC007018
Name of the company	DYNAFLEX PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	12, Sampatrao Colony, R.C. Dutt Road, Vadodara – 390 005, Gujarat, India E-Mail: accounts@dynaflex.in
This form is for	Modification of charge
Charge identification number of the modified	10082844
Type of charge	Immovable Property
Particular of charge holder	CIN No.: L65920MH1994PLC080618 HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel (West), Mumbai – 400 013, Maharashtra, India E-Mail: RBBform8@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Memorandum recording past transactions of creation of Mortgage by Deposit of Title Deeds.
Date of instrument Creating the charge	30.08.2011
Amount secured by the charge	Rs.81.740 millions
Brief particulars 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: 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.81.740 millions by the Company, together with principal, interest, liquidated damages, costs, charges and expenses.
Short particulars of the property charged	Immovable property situated at R.S.No.321 in the sim of village Baska, in district Panchmahal and Sub District Kalol in the state of Gujarat, together with all the buildings. Immovable property situated at R.S.No.318 Paikil 1 adm 4553 Sq Mt, R.S.No.322 Paiki 1 adm 792 Sq Mt, R.S.No.322 Paiki 2 adm 6768 Sq. Mt.
Date of latest modification prior to the present modification	31.12.2010
Particulars of the present modification	The charge shall now stand increased from Rs.68.740 millions to Rs.81.740 millions, in favour the Bank against the equitable mortgage of immovable properties being lying and situated in Gujarat.

TRADE REFERENCES:

v Agrotech Foods Limited

v Reliance Industries Limited

FIXED ASSETS:

v Land

v Building

v Electrical Installations

v Furniture and Fixtures

v Plant and Machinery

v Vehicles

v Office Equipments

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.53.91
UK Pound	1	Rs.87.60
Euro	1	Rs.70.01

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	VRN

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		50

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.