MIRA INFORM REPORT

Report Date :

06.08.2013

IDENTIFICATION DETAILS

Name :	POLYPET FLEXIBLE PACKAGING PRIVATE LIMITED
Registered Office :	Plot No.M-4, M.I.D.C. Industrial Area Hingna, Nagpur – 440016, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	29.04.2005
Com. Reg. No.:	11-152894
Capital Investment / Paid-up Capital :	Rs. 15.000 Millions
CIN No.: [Company Identification No.]	U25200MH2005PTC152894
TAN No.: [Tax Deduction & Collection Account No.]	NGPP02013E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Multi Layers Lamination Film, Stretch Film, 5 Layers Oil and Barrier Films.
No. of Employees :	Not Divulged

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 82000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The profitability of the company seems to be low. The external borrowing appears to be huge. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some 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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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 DECLINED BY

Name :	Mr. Nikhil Arun Amidwar
Designation :	Director
Contact No.:	91-7104-645048
Date :	06.08.2013

LOCATIONS

Registered Office :	Plot No.M-4, M.I.D.C. Industrial Area Hingna, Nagpur – 440016, Maharashtra, India
Tel. No.:	91-7104-645048/ 321771/ 234534/ 235931/ 236093/ 236108/ 396929/ 646180-195
Fax No.:	91-7104-321771/ 236108
E-Mail :	nbplnagpur@hotmail.com polypet2005@rediffmail.com

DIRECTORS

AS ON 25.09.2012

Name :

Mr. Ritesh Arun Amidwar

Designation :

Director

Address :

205, Himalayan Meridian Apartment, Shivaji Nagar, Nagpur – 440010, Maharashtra, India

Date of Birth/Age :

23.07.1978

Date of Appointment :

29.05.2005

DIN No.:

00798978

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	Company/ LLP Status	Defaulting status
1	U25200MH2005PTC152894	POLYPET FLEXIBLE PACKAGING PRIVATE LIMITED	Director	29/05/2005	29/05/2005	Active	NO
2	U25209MH2011PTC216914	GRIP TIGHT SHRINK FILMS PRIVATE LIMITED	Director	02/05/2011	02/05/2011	Active	NO

Name :

Mr. Nikhil Arun Amidwar

Designation :

Director

Address :

205, Himalayan Meridian Apartment, Shivaji Nagar, Nagpur – 440010, Maharashtra, India

Date of Birth/Age :

18.07.1981

Date of Appointment :

29.05.2005

DIN No.:

00798955

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 25.09.2012

Names of Shareholders	No. of Shares
Ritesh Arun Amidwar	75000
Nikhil Arun Amidwar	75000
Total	150000

AS ON 25.09.2012

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

BUSINESS DETAILS

Line of Business :	Manufacturer of Multi Layers Lamination Film, Stretch Film, 5 Layers Oil and Barrier Films.
Products/ Services :	Co - Extruded Poly Film / Lay Flat Tubing

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	31.03.2011
Installed Capacity	M.T. *	5.0 M.T. / DAY (as certified by the management and relied upon by auditors being technical matter)
Licensed Capacity	M.T. *	N.A.
Production	M.T. *	5.0 M.T. / DAY

Particulars	Unit	31.03.2011
Production	M.T.	2303.41

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

· Cosmos Co-Operative Bank Limited, 27 Midas Heights Central Bazar Road, Ramdas Peth, Nagpur - 440010, Maharashtra, India

· Cosmos Co-Operative Bank Limited, 269/270, Shaniwar Peth, Cosmos Height, Pune - 411030, Maharashtra, India

· HDFC Bank Limited

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loan Account No. 03775180170	0.000	0.837
Term Loan Account No. 03775180198	0.689	0.971
Term Loan Account No. 03775180231	23.657	31.109
HDFC Bank Limited, Nagpur Car Loan No. 152256 [Secured against vehicle and guaranteed by the directors of the Company]	0.125	0.477
Cosmos co-operative Bank Limited, Nagpur
Cash Credit Account No. 03760010286	54.020	45.424
Book Debt Account No. 03762010718	1.930	0.000
Total	80.421	78.818
Notes: LONG-TERM BORROWINGS Term Loan - From The Cosmos Co-Operative Bank Limited Against mortgage of land. building, hypothecation of plant and machinery and other fixed assets and guaranteed by the promoter directors of the company and their relatives collateral security of residential property in the name of the relatives of the directors of the company Term loan of Rs 46.000 Millions Rs 3.563 Millions and Rs 3.000 Millions rate of interest PLR 14.00 % subject to change by RBI from TL to time repayment in monthly installments starting after one month from the date of disbursements monthly repayment of Rs 0.621 Million, 7.000 Millions and 2.300 Millions respectively SHORT TERM BORROWINGS Working capital loans are secured against hypothecation of present and a future stock of raw material stock in process finished goods. Stores and spares (not relating to plant and machinery) book debts. Outstanding monies. Receivables. Claims bills materials in transit etc. And receivables and guarantee by the promoter directors of the company The company is sanctioned cash credit limit of Rs 52.500 Millions interest rate 14.50 % pa as per credit rating bills discounting Rs 7.500 Millions interest rate 14.50 % pa as per credit rating and letter of credit Rs 8.000 Millions bank guarantee of Rs 10.000 Millions

Banking Relations :	--
Auditors :
Name :	Rajiv Uttarwar Chartered Accountant
Address :	Mandakini Apartment, Near Deo Nagar Square, Nagpur – 440015, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AAGPU3605D

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
150,000	Equity Shares	Rs. 100/- each	Rs. 15.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
150,000	Equity Shares	Rs. 100/- each	Rs. 15.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	15.000	15.000
(b) Reserves & Surplus	5.599	5.517
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	20.599	20.517
(3) Non-Current Liabilities
(a) long-term borrowings	23.212	36.498
(b) Deferred tax liabilities (Net)	0.378	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	23.590	36.498
(4) Current Liabilities
(a) Short term borrowings	63.808	54.471
(b) Trade payables	79.183	53.095
(c) Other current liabilities	10.771	1.748
(d) Short-term provisions	1.865	0.945
Total Current Liabilities (4)	155.627	110.259
TOTAL	199.816	167.274
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	41.081	46.828
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	1.222	1.111
Total Non-Current Assets	42.303	47.939
(2) Current assets
(a) Current investments	1.850	1.850
(b) Inventories	69.914	44.702
(c) Trade receivables	72.504	60.794
(d) Cash and cash equivalents	1.911	1.353
(e) Short-term loans and advances	11.250	10.524
(f) Other current assets	0.084	0.112
Total Current Assets	157.513	119.335
TOTAL	199.816	167.274

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.000
2] Share Application Money		0.000
3] Reserves & Surplus		4.580
4] (Accumulated Losses)		0.000
NETWORTH		7.580
LOAN FUNDS
1] Secured Loans		74.642
2] Unsecured Loans		7.023
TOTAL BORROWING		81.665
DEFERRED TAX LIABILITIES		0.000
TOTAL		89.245
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		51.816
Capital work-in-progress		0.000
INVESTMENT		2.631
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	32.661
	Sundry Debtors	48.728
	Cash & Bank Balances	0.598
	Other Current Assets	0.000
	Loans & Advances	14.026
Total Current Assets		96.013
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	42.052
	Other Current Liabilities	18.936
	Provisions	0.227
Total Current Liabilities		61.215
Net Current Assets		34.798
MISCELLANEOUS EXPENSES		0.000
TOTAL		89.245

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	300.752	233.799	178.582
		Other Income	NA	3.250	4.837
		TOTAL (A)	NA	237.049	183.419
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	NA	218.097	166.600
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		23.002	18.951	16.819
Less	FINANCIAL EXPENSES (D)		14.157	10.682	9.068
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.845	8.269	7.751
Less/ Add	DEPRECIATION/ AMORTISATION (F)		6.465	6.370	6.038
	PROFIT BEFORE TAX (E-F) (G)		2.380	1.899	1.713
Less	TAX (H)		2.298	0.962	0.113
	PROFIT AFTER TAX (G-H) (I)		0.082	0.937	1.600
	Earnings Per Share (Rs.)		0.55	6.25	53.34

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	0.40	0.87
Net Profit Margin (PBT/Sales)	(%)	0.79	0.81	0.96
Return on Total Assets (PBT/Total Assets}	(%)	1.19	1.14	1.16
Return on Investment (ROI) (PBT/Networth)		0.12	0.09	0.23
Debt Equity Ratio (Total Debt/Networth)		4.22	4.43	10.77
Current Ratio (Current Asset/Current Liability)		1.01	1.08	1.57

LOCAL AGENCY FURTHER INFORMATION

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	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
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	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	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	No
34]	External Agency Rating, if available	No

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10086387	21/12/2010 *	26,181,000.00	THE COSMOS COPERATIVE BANK LIMITED	MIDAS HEIGHTS, RAMDAS PETH OPPOSITE TARUN BHART OFFICE, NAGPUR - 440010, MAHARASHTRA, INDIA	B05832712
2	10084494	14/03/2013 *	150,618,000.00	THE COSMOS CO-OPERATIVE BANK LIMITED	27 MIDAS HEIGHTS, CENTRAL BAZAR ROAD, RAMDASPETH, NAGPUR - 440010, MAHARASHTRA, INDIA	B73596298
3	90354003	05/09/2005	21,000,000.00	PUNJAB NATIONAL BANK	NAGPUR, MAHARASHTRA, INDIA	-

* Date of charge modification

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
From Friends and Relatives	6.599	12.151
Total	6.599	12.151

OPERATING / FINANCIAL RESULTS:

During the year the company has operating with full strength. In spite of competition in market the company has achieved substantial growth during the financial year. The company has increased his turnover from 257.754 Millions to 335.106 Millions.

The company had made an investment of Rs. 0.718 Million towards purchase of assets during the year. During the year Debtors and Creditors management is done very effectively.

The company had done commendable business by exploring new markets and setting inroads for future growth. The company expects substantial growth in subsequent years.

The Chairman gratefully acknowledges the assistance and co-operation received from various departments of Central / State Governments, our bankers and all other concerned.

The management wishes to place on record their deep sense of appreciation for the devoted services of the Executives, Staff and Workers and their continued commitment to the company for its success.

FIXED ASSETS:

v Leasehold Land

v Factory Building

v Plant and Machinery

v Electrical Equipments, Transformer and Installations

v Printing Roller

v Air-conditioner

v Office Equipments

v Furniture and Fixtures

v Vehicle

v 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 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 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. 60.82
UK Pound	1	Rs. 92.97
Euro	1	Rs. 80.73

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

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	4
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.