MIRA INFORM REPORT

Report Date :

30.01.2013

IDENTIFICATION DETAILS

Name :	INTERNATIONAL PACKAGING PRODUCTS PRIVATE LIMITED (w.e.f. 31.03.2005)
Formerly Known As :	INTERNATIONAL PACKAGING PRIVATE LIMITED
Registered Office :	Unit No. 602, 6^th Floor, Antrishk Thakoor House, CTS No. 773, Makwana Road, Marol, Andheri (East), Mumbai-400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	13.12.2000
Com. Reg. No.:	11-130009
Capital Investment / Paid-up Capital :	Rs. 247.429 Millions
CIN No.: [Company Identification No.]	U21014MH2000PTC130009
TAN No.: [Tax Deduction & Collection Account No.]	PNEI05289E
PAN No.: [Permanent Account No.]	AAACI7987D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Sale of plastic woven fabric in roll form and converted Industrial fabrics and woven coated and printed fabrics, etc.
No. of Employees :	600 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 3490000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track record. 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 DECLINED BY

Name :	Mr. Guru
Designation :	Accountant
Contact No.:	91-260-2699386
Date :	29.01.2013

LOCATIONS

Registered Office :	Unit No. 602, 6^th Floor, Antrishk Thakoor House, CTS No. 773, Makwana Road, Marol, Andheri (East), Mumbai-400093, Maharashtra, India
Tel. No.:	91-22-67416620 / 00
Mobile No.:	91-9824732747 (Mr. Dharmesh)
Fax No.:	91-22-67416699
E-Mail :	dsrivastava@interwrap.com cs@skparekh.com hpawani@interwrap.com dprinters@interwrap.com
Website :	http://www.interwrap.com
Area :	2378 sq. ft.
Location :	Owned
Factory :	Survey No. 380/2, Dapada Village, Khanvel Silvassa Road, Union Territory of Dadra and Nagar Haveli-396230, India
Tel. No.:	91-260-2699385 to 388
Fax No.:	91-260-2699390

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Baldev Singh Shokar
Designation :	Director
Address :	3076 Yellow Cedar Pl Coquitlasm BC, British Columbia, Canada, V3E2Y7
Date of Birth/Age :	03.02.1950
Date of Appointment :	10.01.2001
DIN No.:	00265320
Name :	Mr. Robert Alexander Milne
Designation :	Director
Address :	2201, 303 Jervis St. Vancouver BC Canada V6V3P8
Date of Birth/Age :	01.10.1952
Date of Appointment :	10.01.2001
DIN No.:	00458105
Name :	Mr. Durgesh Srivastava
Designation :	Director
Address :	Flat No. 203, Umang A, Vasant Utsav CHS. Limited, Thakur Village, Kandivali (East), Mumbai-400101, Maharashtra, India
Date of Birth/Age :	10.05.1969
Date of Appointment :	31.07.2008
DIN No.:	02313463

KEY EXECUTIVES

Name :	Mr. Guru
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Equity Shareholders	No. of Shares
640713 British Columbia Limited, Canada	121465
640714 British Columbia Limited, Canada	121465
Total	242930

Names of Preference Shareholders	No. of Shares
640713 British Columbia Limited, Canada	12251200
640714 British Columbia Limited, Canada	12248800
Total	24500000

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Sale of plastic woven fabric in roll form and converted Industrial fabrics and woven coated and printed fabrics, etc.

GENERAL INFORMATION

No. of Employees :

600 (Approximately)

Bankers :

Ø HDFC Bank Limited, 1st Floor, Crossway Mall, Ghoddod Road, Surat – 395007, Gujarat, India

Ø Barclays Bank Plc, 601/603, Ceejay House, Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai – 400018, Maharashtra, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Short-term loans and advances	311.024	196.219
Total	311.024	196.219

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Company Chartered Accountants
Address :	14th Floor, The Ruby 29, Senapati Bapat Marg Dadar-West Mumbai – 400028, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AALFS0506L
Holding company :	Ø 640713 British Columbia Limited Ø 640714 British Columbia Limited
Associates :	Ø IBCO SRL Ø InterWarp Inc. Ø InterWrap Polymer Products Private Limited [U25209MH2006PTC163837] Ø Quindago Novia Polymer Company Limited Ø Shubh-Nil Yarns Private Limited [U20296MH1997PTC107904] Ø Poly Trading Inc. Ø InterWrap Corporation Ø Milne Management Inc. Ø Daro Energy Private Limited [U40100GJ2005PTC046328]

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500,000	Equity Shares	Rs. 10/- each	Rs. 5.000 Millions
24,500,000	Preference Shares	Rs. 10/- each	Rs. 245.000 Millions
	Total		Rs. 250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
242,930	Equity Shares	Rs. 10/- each	Rs. 2.429 Millions
24,500,000	Preference Shares	Rs. 10/- each	Rs. 245.000 Millions
	Total		Rs. 247.429 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		247.429	247.429	247.429
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		625.782	578.729	475.036
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		873.211	826.158	722.465
LOAN FUNDS
1] Secured Loans		311.024	196.219	171.024
2] Unsecured Loans		0.000	0.000	5.703
TOTAL BORROWING		311.024	196.219	176.727
DEFERRED TAX LIABILITIES		11.657	8.740	5.495
TOTAL		1195.892	1031.117	904.687
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		651.554	613.762	575.428
Capital work-in-progress		17.992	3.652	13.681
INVESTMENT		2.500	2.500	47.834
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	330.447	295.150	237.752
	Sundry Debtors	220.313	162.311	85.427
	Cash & Bank Balances	45.522	10.454	53.672
	Other Current Assets	6.346	8.846	2.450
	Loans & Advances	132.838	102.791	95.527
Total Current Assets		735.466	579.552	474.828
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	127.588	101.203	159.403
	Other Current Liabilities	72.153	45.161	4.583
	Provisions	11.879	21.985	43.098
Total Current Liabilities		211.620	168.349	207.084
Net Current Assets		523.846	411.203	267.744
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1195.892	1031.117	904.687

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	2471.803	2025.685	1466.386
	EXPENSES
		TOTAL	2275.496	1801.786	1394.855
	PROFIT BEFORE PRIOR PERIOD ADJUSTMENT		0.000	0.000	71.531
	ADJUSTMENT PERTAINING TO EARLIER YEARS		0.000	0.000	(1.218)
	PROFIT BEFORE TAX		81.341	122.055	70.313
Less	TAX		28.593	12.647	4.418
	PROFIT AFTER TAX		52.748	109.408	65.895
	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		577.732	474.038	413.875
	APPROPRIATIONS
		Transfer to General Reserve	N.A.	103.694	60.162
		Dividend		4.900	4.900
		Tax on Dividend		0.814	0.833
	BALANCE CARRIED TO THE B/S		N.A.	577.732	474.038
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	2137.653	1778.877	1219.412
	Earnings Per Share (Rs.)		2.13	4.42	2.66

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	2.13	5.40	4.49
Return on Total Assets (PBT/Total Assets}	(%)	5.86	10.23	6.69
Return on Investment (ROI) (PBT/Networth)		0.09	0.15	0.10
Debt Equity Ratio (Total Liability/Networth)		0.60	0.44	0.53
Current Ratio (Current Asset/Current Liability)		3.48	3.44	2.29

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Trade payable	127.588	101.203	159.403

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	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	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

CORPORATE INFORMATION

Subject is a private company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the business of manufacturing and sale of plastic woven fabric in roll form and converted Industrial fabrics and woven coated and printed fabrics, etc.

OPERATIONS

During the period under consideration the company has shown a satisfactory performance. Your Board foresee a good business and opportunities ahead in the ensuing years.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U21014MH2000PTC130009
Name of the company	INTERNATIONAL PACKAGING PRODUCTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Unit No. 602, 6^th Floor, Antrishk Thakoor House, CTS No. 773, Makwana Road, Marol, Andheri (East), Mumbai-400093, Maharashtra, India Email: cs@skparekh.com
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	HDFC Bank Limited, 1st Floor, Crossway Mall, Ghoddod Road, Surat – 395007, Gujarat, India Email: aashish.oza@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Memorandum of equitable mortgage by deposit of title deeds dated 09th June 2012
Date of instrument Creating the charge	09.06.2012
Amount secured by the charge	Rs. 400.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Per Agreement Terms of Repayment Repayable On Demand Margin As decided by the bank from time to time Extent and Operation of the charge First exclusive change on the property situated at land bearing Survey No.380/2, Village Dapada, Union Territory of Dadra and Nagar Haveli, Silvasa more particularly described in the docs attached for the facilities granted / to be granted by the Bank
Short particulars of the property charged	All that piece and parcel of NA land bearing Survey No.380/2, Village Dapada, Union Territory of Dadra and Nagar Haveli, Silvasa both admeasuring approx 30000 sq ft and 88000 sq ft of plinth area along with future construction if any situated and lying and being at Village: Dapada, U.T. of Dadra And Nagar Haveli, Silvasa.

FIXED ASSETS:

Ø Freehold Land

Ø Factory Building

Ø Administration Building

Ø Electrical Installation

Ø Furniture and Fixture

Ø Computer

Ø Vehicles

Ø Office Equipments

Ø Plant and Machinery

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. 53.70
UK Pound	1	Rs. 84.35
Euro	1	Rs. 72.21

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		48

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.