MIRA INFORM REPORT

Report Date :

10.12.2013

IDENTIFICATION DETAILS

Name :	FLEXIFOIL PACKAGING PRIVATE LIMITED
Registered Office :	No-47/2, Magadi Main Road, Chennigappa Industrial Estate, Vishwaneedam Post, Sunkadakatta, Bangalore – 560 091, Karnataka
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	08.01.2007
Com. Reg. No.:	08-041424
Capital Investment / Paid-up Capital :	Rs.0.721 Million
CIN No.: [Company Identification No.]	U28999KA2007PTC041424
TAN No.: [Tax Deduction & Collection Account No.]	BLRF01346C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of printing and packing Material.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 20000
Status :	Small company
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a small company in its field. Its scales of activities are limited. Profit margin of the company appears to be low. However, trade relations are reported to be fair. Business is active. Payment terms are 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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6 % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

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. Abhishek
Designation :	Director
Contact No.:	91-80-23282433
Date :	29.11.2013

LOCATIONS

Registered Office/ Factory :	No-47/2, Magadi Main Road, Chennigappa Industrial Estate, Vishwaneedam Post, Sunkadakatta, Bangalore – 560 091, Karnataka, iNDIA
Tel. No.:	91-80-23282433/ 23502206
Fax No.:	91-80-23282435/ 23108891
E-Mail :	flexifoilpackaging@gmail.com info@flexifoilpackaging.com flexifoil@dataone.in
Website :	www.flexifoilpackaging.com
Area :	15000 sq. ft.
Location :	Owned

DIRECTORS

AS ON 27.09.2013

Name :	Mr. Narendra Kumar Lalwani
Designation :	Director
Address :	#30/6, Shankar Mutt Road, Adarsh Manor, Shankarpuram, Bangalore – 560 004, Karnataka, India
Date of Appointment :	08.01.2007
DIN No.:	02470610
Name :	Mr. Abhishek Lalwani
Designation :	Director
Address :	#30/6, Shankar Mutt Road, Adarsh Manor, Shankarpuram, Bangalore – 560 004, Karnataka, India
Date of Appointment :	08.01.2007
DIN No.:	02081505
Name :	Mr. Chandra Prakash Lalwani
Designation :	Director
Address :	#30/6, Shankar Mutt Road, Adarsh Manor, Shankarpuram, Bangalore – 560 004, Karnataka, India
Date of Appointment :	08.01.2007
DIN No.:	02470550

MAJOR SHAREHOLDERS

AS ON 27.09.2013

Names of Shareholders	No. of Shares
Narendra Kumar Lalwani	10000
Chandra Prakash Lalwani	10000
Abhishek Lalwani	14800
Reema Lalwani	6500
Narendra Kumar Lalwani (HUF)	6800
Chandra Prakash Lalwani (HUF)	6000
Sushila N Lalwani	7800
Sangeeta C Lalwani	7800
Others	2400
Total	72100

Equity Share Break up (Percentage of Total Equity)

AS ON 27.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of printing and packing Material.
Exports :
Products :	Packing Material
Countries :	· Bangladesh · Dubai · Singapore
Imports :
Products :	Raw Material
Countries :	· China · Taiwan
Terms :
Selling :	Credit and T/T
Purchasing :	Credit and T/T

GENERAL INFORMATION

Suppliers :

Henkel Adhesives

Customers :

Manufacturer

· Himalaya Trucks

· Tablet India Limited

No. of Employees :

25 (Approximately)

Bankers :

Canara Bank, Southend Branch, Bangalore – 560 004, Karnataka, India

Facilities :

Total Facility= Rs.10.000 Millions (From Canara Bank)

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
LONG TERM BORROWINGS
Term Loans from Banks
Canara Bank	6.121	8.984
Other Loans and Advances
Vehicle Loans	0.000	0.042
SHORT TERM BORROWINGS
Cash Credit from Banks	5.311	4.313
Total	11.432	13.339

NOTES:

LONG TERM BORROWINGS:

· Term loan from Canara Bank of Rs.16.600 Millions was sanctioned for acquisition of KIADB land and construction of factory building and installation of machinery/electrical works. An amount of Rs.8.984 Millions has been utilised during the year 2011-2012. The loan is repayable in 83 monthly equal installments of Rs.0.198 Millions each and one installment of 0.166 Millions 80 installments are outstanding as on balance sheet date. The said loan carries interest @ 15.00%

· The said loan is secured by way of EMT of 1 acre of industrial land situated at Horahalli Industrial Estate allotted by KIADB and the proposed factory building to be constructed and hypothecation of plant and machineries proposed to be purchased out of the said loan.

· The vehicle loans are secured by hypothecation of vehicles taken on loan.

SHORT TERM BORROWINGS:

Cash credit from banks is secured by hypothecation of current assets in the form of stocks and bookdebts and carries interest rate @ 14.75% p.a.

Banking Relations :	--
Auditors :
Name :	T D Jain and D I Sakaria Chartered Accountants
Address :	#34, 3^rd Floor, Keshava Nivas, 1^st Main Road, Gandhinagar, Bangalore – 560 009, Karnataka, India
PAN No.:	AAAFO2177L

CAPITAL STRUCTURE

AS ON 27.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs. 10/- each	Rs.1.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
72100	Equity Shares	Rs. 10/- each	Rs.0.721 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

FINANCIAL DETAILS FILE ATTACHED

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	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)	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	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

NOTE: Registered office address of the company has been shifted from 24, 5^th Cross, 4^th Main Industrial Town, Rajaji Nagar, Bangalore – 560 044, Karnataka, India to the present address w.e.f.03.10.2009

UNSECURED LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Short Term Borrowings
Demand Loans
Directors	0.830	1.497
Shareholders	2.233	3.026
Total	3.063	4.523

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10295687	18/06/2011	22,600,000.00	CANARA BANK	SOUTHEND ROAD BRANCH, BANGALORE – 560 004, KARNATAKA, INDIA	B16350837

CORPORATE INFORMATION:

Subject is a Private Limited company domiciled in India and incorporated under provisions of the Companies Act, 1956 to carry on the activities as manufacturers, producers, processors, makers, converters, importers, exporters, traders, buyers, sellers, retailers, wholesalers, suppliers, indenters, packers, movers, preservers, stockiest, agents, distributors, consignors, designers, jobbers or otherwise deal in aluminum foils, aluminum sheets, all types and kinds of packaging products, etc.

Subject took over Flexifoil Packaging, a proprietary concern, engaged in the business of manufacturing of aluminum foils as a going concern at book values and Goodwill of Rs.0.500 Millions during the year 2007-2008.

OPERATIONS:

There is a substantial increase in the turnover i.e. Rs.35.286 Millions as compared to previous year Rs.32.457 Millions. Expenses has been decreased. Hence it is under a profit of Rs.0.252 Millions. The management is confident of earning adequate profits in the foreseeable future.

FIXED ASSETS:

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· Computers

· Vehicles

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.61.18
UK Pound	1	Rs.100.01
Euro	1	Rs.83.82

INFORMATION DETAILS

Information Gathered by :	HNA
Report Prepared by :	NKT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.