MIRA INFORM REPORT

Report Date :

22.02.2013

IDENTIFICATION DETAILS

Name :	LOHIA STARLINGER LIMITED (w.e.f. 31.12.1987)
Formerly Known As :	LOHIA STARLINGER PRIVATE LIMITED
Registered Office :	D-3/A, Panki Industrial Estate, Kanpur – 208022, Uttar Pradesh
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	05.10.1981
Com. Reg. No.:	20-005446
Capital Investment / Paid-up Capital :	Rs.50.715 Millions
CIN No.: [Company Identification No.]	U29263UP1981PLC005446
TAN No.: [Tax Deduction & Collection Account No.]	KNPL00020G/ KNPL01083F/ KNPL00108D
PAN No.: [Permanent Account No.]	AAACL2470J
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturing of Spinning Machines for Plastic Woven Fabric and Textile Industry.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (58)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 8500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having a fine track record. The management has failed to file its financials with the government department for the year 2012. As per previous year’s record, the financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	AA- (Long Term Rating)
Rating Explanation	High degree of safety and very low credit risk.
Date	December 21, 2012

Rating Agency Name	CRISIL
Rating	A1+ (Short Term Rating)
Rating Explanation	Very strong degree of safety and lowest credit risk.
Date	December 21, 2012

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/ Factory :	D-3/A, Panki Industrial Estate, Kanpur – 208022, Uttar Pradesh, India
Tel. No.:	91-512-2691221/ 3045100
Fax No.:	91-512-2691249/ 3045299
E-Mail :	cs@lohiagroup.com sales@lohiagroup.com lsl@lohiagroup.com lsl@lw1.vsnl.net.in mdo@lohiagroup.com
Website :	http://www.lohiagroup.com
Export Sales :	218, Ansal Chambers II, Bhikaji Cama Place, New Delhi - 110066, India
Tel. No.:	91-11-30641770
Fax No.:	91-11-30641771
Branch Office :	Located at: · Ahmedabad · Bengaluru · New Delhi · Kolkata
Overseas Offices :	Located at: · Thailand · Indonesia · UAE · USA · Brazil

DIRECTORS

As on: 24.12.2011

Name :	Mr. Gopal Chandra Lohia
Designation :	Director
Address :	7/153-B, Swaroop Nagar, Kanpur – 208 002, Uttar Pradesh, India
Date of Birth/Age :	05.07.1937
Date of Appointment :	04.04.1983
DIN No.:	00203506
Name :	Mr. Raj Kumar Lohia
Designation :	Chairman cum Managing Director
Address :	113/91, Swaroop Nagar, Kanpur – 208 002, Uttar Pradesh, India
Date of Birth/Age :	21.08.1954
Qualification :	B.A. (Economics)
Date of Appointment :	05.10.1981
DIN No.:	00203659
Name :	Mr. Vinay Sah
Designation :	Whole Time Director
Address :	Anand Shubh Dham, No.9. 7/213, Swaroop Nagar, Kanpur – 208 002, Uttar Pradesh, India
Date of Birth/Age :	23.05.1955
Date of Appointment :	01.01.1997
DIN No.:	00203790
Name :	Mr. Anurag Kumar Lohia
Designation :	Whole Time Director
Address :	Saket, 3A/ 88, Azad Nagar, Kanpur – 208 002, Uttar Pradesh, India
Date of Birth/Age :	18.05.1969
Date of Appointment :	27.07.2002
DIN No.:	00205680
Name :	Mr. Prakash Chandra Joshi
Designation :	Whole Time Director
Address :	C-312 Seikh Sarai, Phase 1, Malaviya Nagar, New Delhi – 110 017, Delhi, India
Date of Birth/Age :	14.11.1957
Date of Appointment :	01.04.2009
DIN No.:	01255000
Name :	Mr. Paritosh Kumar Mukherjee
Designation :	Additional Director
Address :	Flat No. 305, Srishti Apartment, 4/276 B, Parwati Bagla Road, Vishnupuri, Kanpur - 208002 , Uttar Pradesh, India
Date of Birth/Age :	01.12.1942
Date of Appointment :	24.12.2012
DIN No.:	06467351
Name :	Mr. Naresh Kumar Gupta
Designation :	Additional Director
Address :	J-32, SARITA VIHAR, NEW DELHI – 110044, India
Date of Birth/Age :	15.04.1938
Date of Appointment :	24.12.2012
DIN No.:	00214602

KEY EXECUTIVES

Name :	Mr. Arvind Kumar Bhargava
Designation :	Company Secretary
Address :	107 Bima Vihar, Lakhanpur, Kanpur – 208 024, Uttar Pradesh, India
Date of Birth/Age :	23.03.1963
Date of Appointment :	16.05.1995
PAN No.:	ACIPB6172E
Tel. No. :	91-512-2582698
Email :	cs@lohiagroup.com

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 24.12.2011

Names of Shareholders	No. of Shares
Vinay Sah	240
Raj Kumar Lohia	104,000
Anurag Kumar Lohia	64,000
Gopal Chandra Lohia	100,000
Rajendra Kumar Newatia	80

Equity Share Break up (Percentage of Total Equity)

As on: 24.12.2011

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	36.65
Bodies corporate	43.27
Directors or relatives of directors	17.35
Other top fifty shareholders	0.49
Others	2.24
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Spinning Machines for Plastic Woven Fabric and Textile Industry.

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Woven Sack
Machinery for manufacture of Woven Plastic Fabrics	Nos.	NA	23198	25847
Machinery for processing of Man Made Yarns	Nos.	NA	72	19

As the licensing requirement has been dispensed by the Government of India only installed capacities determined and as certified by the management, have been given.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· The Hongkong and Shanghai Banking Corporation Limited, Birla Towers, 25, Barakhamba Road, New Delhi – 110001, India

· State Bank of India, Overseas Branch, Virendra Smriti Complex, 15/54 – B, Civil Lines, Kanpur – 208001, Uttar Pradesh, India

· State Bank of India, Co-operative Industrial Estate Branch, Kanpur, Uttar Pradesh, India

· Canara Bank, 6/98, The Mall, Kanpur – 208001, Uttar Pradesh, India

· HDFC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Working capital loans banks secured	479.668	189.187
Total	479.668	189.187

Banking Relations :	--
Auditors :
Name :	Anil Pariek and Garg Chartered Accountants
Address :	33 Anand Bazar, Swaroop Nagar, Kanpur – 208 002, Uttar Pradesh, India
Tel. No.:	91-512-2214829
PAN No.:	AAAFG6229R
Associates :	Lohia Hong Kong Limited
Subsidiaries :	· Lohia Sales and Services Limited CIN No.: U24139UP1985PLC006983 · Lohia Packaging Machines Limited CIN No.: U17115UP1987PLC009240 · Lohia Filament Machines Limited CIN No.: U29261UP2002PLC026468 · Divine Wellness Private Limited CIN No.: U72200UP2000PTC025199

CAPITAL STRUCTURE

As on: 24.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions

Issued & Subscribed :

No. of Shares	Type	Value	Amount
5075000	Equity Shares	Rs.10/- each	Rs.50.750 Millions

Paid-up Capital :

No. of Shares	Type	Value	Amount
5071450	Equity Shares	Rs.10/- each	Rs.50.715 Millions

As on: 31.12.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
12000000	Equity Shares	Rs.10/- each	Rs.120.000 Millions

Issued, Subscribed Paid-up Capital :

No. of Shares	Type	Value	Amount
5075000	Equity Shares	Rs.10/- each	Rs.50.750 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		50.715	50.715	50.715
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2082.468	1660.419	1311.974
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2133.183	1711.134	1362.689
LOAN FUNDS
1] Secured Loans		479.668	189.187	474.939
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		479.668	189.187	474.939
DEFERRED TAX LIABILITIES		14.684	39.569	51.896
TOTAL		2627.535	1939.890	1889.524
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		920.170	951.430	1030.905
Capital work-in-progress		36.019	16.354	21.538
INVESTMENT		177.750	192.870	114.975
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1201.371	966.708	772.188
	Sundry Debtors	539.089	195.366	207.030
	Cash & Bank Balances	25.890	73.964	25.053
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	712.347	312.109	189.358
Total Current Assets		2478.697	1548.147	1193.629
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	500.565	466.491	288.938
	Other Current Liabilities	459.376	286.802	170.817
	Provisions	25.160	15.618	11.768
Total Current Liabilities		985.101	768.911	471.523
Net Current Assets		1493.596	779.236	722.106
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2627.535	1939.890	1889.524

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	5453.371	3806.809	3570.395
		Other Income	220.974	150.257	4.516
		Finance and Other Income	0.000	0.000	(0.881)
		TOTAL (A)	5674.345	3957.066	3574.030
Less	EXPENSES
		Consumption materials changes inventories	3432.271	2311.366
		Manufacturing service costs	90.057	68.808
		Employee related expenses	387.001	364.728
		Administrative selling other expenses	857.228	611.757
		TOTAL (B)	4766.557	3356.659	3171.529
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		907.788	600.407	402.501
Less	FINANCIAL EXPENSES (D)		23.177	22.525	31.614
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		884.611	577.882	370.887
Less/ Add	DEPRECIATION/ AMORTISATION (F)		141.541	139.921	136.380
	PROFIT BEFORE TAX (E-F) (G)		743.070	437.961	234.507
Less	TAX (H)		241.089	141.655	94.733
	PROFIT AFTER TAX (G-H) (I)		501.981	296.306	139.774
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1356.126	1059.820	920.046
Less	APPROPRIATIONS		30.952	0.000	0.000
	BALANCE CARRIED TO THE B/S		1827.155	1356.126	1059.820
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of exports		1015.075	1114.051
		Job Charges		0.005	0.000
		Interest		0.003	0.000
		Other Income		0.153	5.383
	TOTAL EARNINGS		2288.700	1015.236	1119.434
	IMPORTS
		Raw Materials and Components		556.825	386.701
		Capital Goods		16.854	56.490
		Stores and Spares		0.094	0.361
	TOTAL IMPORTS		NA	573.773	443.552
	Earnings Per Share (Rs.)		98.98	58.39	27.54

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.85	7.49	3.91
Net Profit Margin (PBT/Sales)	(%)	13.63	11.50	6.57
Return on Total Assets (PBT/Total Assets}	(%)	21.86	17.52	10.54
Return on Investment (ROI) (PBT/Networth)		0.35	0.26	0.17
Debt Equity Ratio (Total Debt/Networth)		0.22	0.11	0.35
Current Ratio (Current Asset/Current Liability)		2.52	2.01	2.53

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	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	Yes

PERFORMANCE AND OUTLOOK FOR THE FUTURE

The Company achieved a turnover, net of excise, of Rs. 5453.400 Millions as against previous year turnover of Rs. 3806.800 Millions, recording an impressive growth of over 40, with corresponding increase in operating profits. Exports during the year at Rs.2288.100 Millions recorded growth of more than 100 over last year s exports level of Rs. 1015.100 Millions. The year was favourable with all round buoyancy in demand. However, emerging Global economic scenario coupled with domestic threats to country s economic growth due to unmanageable fiscal deficit, inflation, increase in bank rates, accelerating commodity and crude prices are cause of concern. Being a leading global supplier of machines for Plastic Woven Fabric Industry, the Company continuously assesses the customer needs to develop new products which deliver better value to customers. The Directors are confident of the Company maintaining its lead position and continuing to be on growth path in the years to come.

FIXED ASSETS

· Land – Freehold

· Land – Leasehold

· Buildings

· Plant and Machinery

· Computer Installation

· Office Equipment

· Furniture and Fixtures

· Vehicles

Bankers Charges Report as per Registry

Corporate identity number (CIN) or foreign company registration number of the company	U29263UP1981PLC005446
Name of the company	LOHIA STARLINGER LIMITED
Address of the registered office or of the principal place of business in India of the company	D-3/A, Panki Industrial Estate, Kanpur – 208022, Uttar Pradesh, India E-mail: cs@lohiagroup.com
This form is for	Creation of charge
Type of charge	· Movable property (not being pledge) · Others (Plant and Machinery)
Particular of charge holder	The Hongkong and Shanghai Banking Corporation Limited, Birla Towers, 25, Barakhamba Road, New Delhi – 110001, India E-mail: reemahassija@hsbc.co.in
Nature of instrument creating charge	Hypothecation Agreement dated 10th December 2012
Date of instrument Creating the charge	10.12.2012
Amount secured by the charge	Rs.560.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest LIBOR/EURIBOR + 2.75 per cent per annum Terms of Repayment Repayable in 16 equal quarterly installments, with first repayment falling 15 months from the first drawdown date Margin The Company shall maintain such margin as may be specified by the bank from time to time. Extent and Operation of the charge First charge over unencumbered plant and machinery of the Borrower at D-3/A, Panki Industrial Estate, Kanpur-208022 (Panki) and Lohia Industrial Complex, Chaubepur, Kanpur-209203 (Chaubepur) Others In case the Company fails to fulfill its obligation under the Hypothecation Agreement, the Bank shall be entitled to take possession of the hypothecated assets and sell them by public auction or private contract and utilize the proceeds in full or part settlement of its claims
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First charge over Borrower's unencumbered plant and machinery, machinery spares, tools and accessories, both present and future at D-3/A, Panki Industrial Estate, Kanpur-208022 (Panki) and Lohia Industrial Complex, Chaubepur, Kanpur-209203 (Chaubepur). Detailed as per Schedule Part III of Hypothecation Agreement attached

AS PER WEBSITE DETAILS:

Press Release

PLASTINDIA 2012, NEW DELHI, INDIA

Kanpur, 2012

Lohia Starlinger Limited from its 150,000 m2 machine building facilities in Kanpur, India has been providing advanced solutions to the raffia or woven plastics flexible packaging industry around the world for more than 3 decades. It has built a population of over 800 Tape extrusion lines and 32,000 circular looms in over 60 countries with an installed processing capacity of 1.5 million tons of plastic. The global footprint of the company is underlined by its fully owned subsidiaries as well as liaison and branch offices in UAE, USA, Brazil, Thailand, Indonesia and China. It is ably supported by sales agents in all major woven sacks producing countries. In the last 5 years the company has delivered a number of innovations; in PP tape extrusion – duotec, tape winding – autoroto, circular weaving – nova6 and nova venti4 and PP yarn spinning – baby lofil.

Lohia Starlinger Limited participated in Plastindia 2012 with innovative solutions and updated machinery for flexible packaging industry. It continues to invest in developing technologies and products based on close understanding of market needs, bringing efficiency and reducing cost of quality of end products.

The company showcased its innovations in plastic tape extrusion (coex series), winding (ltw 200ce and autoroto), circular weaving (nova series) and also introduced its expanded product profile in extrusion coating (coatex 1500/90), flexographic printing in 6 colors (“Lohia-Pelican Soloprint”), Spin-draw-wind (lofil 80/8 HT) for PP multifilament yarn. All these machines received good response.

Production of PP tape (flat yarn) by co-extrusion on the latest offering, coex 1000hs, with melt output of 600 kg/hour drew special attention from visitors. The coex 1000hs brings to raffia industry the advantages of co-extrusion. Co-extrusion is an established technique in plastics that capitalizes on combining the properties of two or more polymer mixes such that the resultant lamellar structure produced displays properties that are superior or at least more desirable than either of the two or more polymers mixes individually. It could mean enhanced performance or lower costs or both.

The coex 1000hs demonstrated in the stand uses two separate extruders delivering the melt into the T-die to extrude a 3 layer film with the top and bottom layer from one extruder and the middle layer from the other extruder in pre-set ratio. Line speed of 425 m/min with high filler (CaCO3) content was demonstrated at Plastindia 2012 to produce PP tapes with a middle layer having 25% filler content and the upper and lower layer with just 3% filler as a possible solution to reduce the cost of raw material for certain application like low GSM wrapping fabric and lowering the dust generation in weaving, reducing damage to loom elements and also the production environment.

The company is conducting extensive trials at its development facility to develop the various recipes and application of co-extruded tapes for woven fabric and believes that co-extrusion can be successfully applied to deliver performance that is hitherto unsurpassed including possibility to optimise use of additives like UV stabilizers, antifogging agent, and colouring and recycled materials. Company is studying the feasibility to expand its co-extrusion line to include five layer tape production for value added applications in geotextiles, agro- textiles and composites.

COEX 1000HS had autoroto winders at the delivery end to make bobbins. These winders do away with the human efforts needed to transfer the tape from full bobbins to empty tubes at speeds in excess of 500 m/min and deliver tape packages of equal lengths. Using step-precision winding technique, the unwinding tension fluctuations is kept low and within a narrow band in the subsequent process of weaving. Autoroto introduced in year 2007, upgraded twice based on extensive field experiences is becoming the industry standard. Lohia Starlinger Limited clearly has become industry leader in winding technology.

Lohia Starlinger Limited carry a long accumulated knowledge of designing and delivering machinery for producing the plastic woven fabric for various components of certified quality FIBC/Big bags for a wide range of applications and has deep understanding of design, conversion, testing and certification processes of FIBC industry worldwide. Domain experts were present at Plastindia to help visitors choose the right combination and configuration of tape extrusion line, tape winders, looms and the downstream equipment. LOHIA demonstrated fabric cutting machine “fcm 1400” in the stand for cross cutting of fabric lengths and punching out holes for discharge/filling spouts and now offer special purpose machines like webbing/Belt cutting, bag cleaning, Hydraulic Pallet and Bale press.

The nova6 and nova10 add to the existing range of 6, 8 and 10 shuttle looms for producing fabric in tubular form or cut-open to make different components of customized big-bags. Whether it is low GSM filling/discharge spouts or medium to heavy GSM fabric for 1 or 2 loop bags or tubular fabrics with reinforced warp zones for 4 loop bags, the Lohia machines offer solution for high productivity, lower energy consumption at competitive costs. The nova venti 4 to produce ventilated fabric for bulk packaging of perishable agro-products like potatoes etc presented attractive option to expand application of FIBC/Big bags.

Lohia introduced spin-draw-wind line model lofil 80/8 HT for up to 80 kg/hour melt output. It was another star attraction at the stand. The machine was shown producing 3000 and 1000 denier intermingled yarn simultaneously on one side and 4 yarns of 1000 denier on the other side. With the LOFIL lines, bag producers or even yarn producers can produce tailor-made yarn in 600 to 4,800 denier ranges, in desired quantities and more suited to the specific needs of strength and aesthetics in their products. The compact LOFIL series of spin-draw-wind lines are available in 20, 40 or 80 kg/hour capacities and also supports quick and easy changeover of denier, colour and other desired properties.

Lohia Starlinger Limited continues to build strength to forge deeper and longer relationship with its worldwide customers delivering advantages through innovative products and solutions. The company is encouraged at the response from the exhibition and is confident of receiving good business from existing as well as new customers in Indian and overseas markets.

Kanpur, 2011

Lohia Starlinger Limited brings 3 decades of experience and expertise of supplying complete range of machines for Plastic Woven Fabric Industry for flexible packaging for wide range of applications like bags, sacks, tarpaulin, FIBC (big-bags), carpet backing, leno bags and many more.

The projects supplied by the company are running successfully in over 60 countries around the world and this accomplishment has been possible due to the Group’s continuous emphasis on quality and innovation. They have delivered more than 750 Tape Extrusion Lines supported by 32,000 Looms processing over one million tons per year of plastics for woven fabric. Lohia portfolio of products deliver complete end to end solutions from a wide range of tapelines, winders and circular looms for producing quality woven plastic fabrics.

Recently they have added many innovations to its portfolio in the extrusion, winding and weaving series.

NEW PRODUCTS FROM LOHIA

Carrying forward, the legacy of a strong in-house research and development, Lohia has now come up with three new innovations.

1. MULTIFILAMENT SPIN-DRAW-WIND LINE - lofil 40/4 HT

While the baby lofil HT has filled the gap in supply chain management by in-house production of customized high tenacity sewing yarn, the lofil 40/4 HT is for those who are looking for a bigger capacity. With its 4 spinning positions and 4 winding heads, it can deliver flat yarn upto 4,800 denier or ready to use intermingled yarn upto 2,400 denier. The increased delivery speed of 1500 m/min means optimum utilization of extrusion capacity at even lighter deniers (see graph).

2. TAPE WINDERS – next generation autoroto

autoroto launched in 2007 was the most radical innovation in winding technology for raffia industry and has become an industry standard now. The key features are automatic changeover, equal length in bobbins, reduce wastage and increased productivity. Already more than 7000 autoroto winders are running successfully in the industry.

Now Lohia will be introducing the next generation autoroto which will be equipped with an exclusive technology making these winders more efficient requiring least maintenance.

3. CIRCULAR LOOM - nova venti 4

Circular looms are the norm for weaving PP/PE tapes into tubular fabric that goes into making these packaging solutions. For bulk packing, storing and transporting perishable agricultural produce like potatoes, onions etc. which need to breathe; “ventilated” bags are required. This fabric, due to its unique construction could hitherto only be made on flat looms at considerably higher cost since flat looms are expensive. Besides bulk packing agri-produce like potatoes etc, bags made with this kind of fabric might also find use in other areas like sludge disposal.

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.54.48
UK Pound	1	Rs.82.71
Euro	1	Rs.72.23

INFORMATION DETAILS

Report Prepared by :

VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		58

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.