MIRA INFORM REPORT

Report Date :

30.01.2013

IDENTIFICATION DETAILS

Name :	MONARCH MULTILAYERS PRIVATE LIMITED
Registered Office :	Shubham 47-A, Khare Town, Dharampeth, Nagpur – 440010, Maharashtra
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	04.09.1990
Com. Reg. No.:	11-058010
Capital Investment / Paid-up Capital :	Rs. 4.000 Millions
CIN No.: [Company Identification No.]	U27130MH1990PTC058010
TAN No.: [Tax Deduction & Collection Account No.]	NGPM00983D
PAN No.: [Permanent Account No.]	AAACM9575F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Multilayer Films.
No. of Employees :	45 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 94000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an 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 PARTED BY

Name :	Mr. Vishwas
Designation :	Accounts Manager
Contact No.:	91-9561088507
Date :	30.01.2013

LOCATIONS

Registered Office/ Factory 1 :	Shubham 47-A, Khare Town, Dharampeth, Nagpur – 440010, Maharashtra, India
Tel. No.:	91-712-2527966
Mobile No.:	91-9561088507 (Mr. Vishwas)
Fax No.:	91-712-2545863
E-Mail :	mmpl75@gmail.com prathi75@hotmail.com corporate_ngppm@yahoo.co.in
Location :	Owned
Factory 2 :	M – 3, MIDC Industrial Area, Hingra Road, Nagpur – 440028, Maharashtra, India

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Murlidhar Midanlal Rathi
Designation :	Managing Director
Address :	Shubham 47-A, Khare Town, Dharampeth, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	22.03.1947
Date of Appointment :	29.09.2012
DIN No.:	00556582
Name :	Mr. Anand Murlidhar Rathi
Designation :	Director
Address :	Shubham 47-A, Khare Town, Dharampeth, Nagpur – 440010, Maharashtra, India
Date of Birth/Age :	27.12.1981
Date of Appointment :	01.05.2000
DIN No.:	01477304

KEY EXECUTIVES

Name :	Mr. Vishwas
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Anand Rathi	8900
Murlidhar Rathi(HUF)	13350
Murlidhar Rathi	8850
Pushpa Devi Rathi	8900
Total	40000

AS ON 29.09.2012

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

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Multilayer Films.

Products :

ITC Code	Product Descriptions
303,717,009	Co-Extructed Polythene Films

Exports :

Products :

Multilayer Films

Countries :

Ø Australia

Imports :

Products :

Raw Material

Countries :

Ø Qatar

Ø China

Terms :

Selling :

L/C, Cash and Credit (30 Days – 60 Days)

Purchasing :

L/C, Cash and Credit (30 Days – 60 Days)

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Multilayers Film	Per Shift /Tons MT	2220	1000.347
Scrap	Tons MT	--	43.152

GENERAL INFORMATION

Customers :

Wholesalers, Retailers and End Users

No. of Employees :

45 (Approximately)

Bankers :

State Bank of India, Sme Branch, Plot No X-43, Hingna MIDC Industrial Area, Hingna Road, Nagpur – 440016, Maharashtra, India

Tel No.: 91-7104-232074

Fax No.: 91-7104-235525

Website: www.sbi.co.in

Facilities :

Particulars	31.03.2012	31.03.2011
	(Rs. In Millions)
Long - term Borrowings	6.274	2.779
Short - term Borrowings [Secured Loans]	28.817	20.912
Total	35.091	23.691

Banking Relations :	--
Auditors :
Name :	Paliwal Modani and Company Chartered Accountants
Address :	Parkhi Bhavan, Near City Post Office, Itwari, Nagpur – 440002, Maharashtra, India
Tel. No.:	91-712-2768827
Income-tax PAN of auditor or auditor's firm :	AABFP5515E
Associates :	Ø Monarch Extrusion Private Limited Ø Monarch Plastics Private Limited Ø Monarch Infrastructure Ø C. M. Rathi and Brothers

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000	Equity Shares	Rs. 100/- each	Rs. 5.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
40,000	Equity Shares	Rs. 100/- each	Rs. 4.000 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		4.000	4.000	4.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		19.468	17.004	14.816
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		23.468	21.004	18.816
LOAN FUNDS
1] Long - term Borrowings		6.274	2.779
2] Short - term Borrowings [Secured Loans]		28.817	20.912
TOTAL BORROWING		35.091	23.691	17.500
DEFERRED TAX LIABILITIES		1.197	1.185	1.252
TOTAL		59.756	45.880	37.568
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		10.022	10.619	11.368
Capital work-in-progress		1.394	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	14.200	11.361	6.699
	Sundry Debtors	18.575	17.253	13.395
	Cash & Bank Balances	0.412	0.718	1.160
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	37.241	19.823	9.354
Total Current Assets		70.428	49.155	30.608
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.557	9.149	3.639
	Other Current Liabilities	6.022	4.481	0.701
	Provisions	0.509	0.264	0.068
Total Current Liabilities		22.088	13.894	4.408
Net Current Assets		48.340	35.261	26.200
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		59.756	45.880	37.568

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income			82.651
		Other Income			0.334
		TOTAL (A)	127.651	108.863	82.985
Less	EXPENSES
		Raw Material Consumed			68.235
		Payment and Benefits to Employees			0.979
		Manufacturing and Other Expenses			7.126
		Increase / (Decrease) in Stock			1.745
		TOTAL (B)	119.099	102.340	78.085
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		8.552	6.523	4.900
Less	FINANCIAL EXPENSES (D)		3.624	2.386	1.550
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		4.928	4.137	3.350
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.150	1.010	1.184
	PROFIT BEFORE TAX (E-F) (G)		3.778	3.127	2.166
Less	TAX (H)		1.314	0.939	0.897
	PROFIT AFTER TAX (G-H) (I)		2.464	2.188	1.269
Less	INCOME TAX EARLIER YEARS		0.000	0.000	0.156
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		15.293	13.105	11.992
	BALANCE CARRIED TO THE B/S		17.757	15.293	13.105
	IMPORTS ON CIF BASIS		N.A.	22.580	5.012
	Earnings Per Share (Rs.)		61.60	54.69	31.73

Expected Sales (2012-2013): Rs. 200.000 Millions

The above information has been parted by Mr. Vishwas (Accounts Manager)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.93	2.01	1.53
Net Profit Margin (PBT/Sales)	(%)	N.A.	N.A.	2.62
Return on Total Assets (PBT/Total Assets}	(%)	4.70	5.23	5.16
Return on Investment (ROI) (PBT/Networth)		0.16	0.15	0.12
Debt Equity Ratio (Total Debt/Networth)		1.50	1.13	0.93
Current Ratio (Current Asset/Current Liability)		3.19	3.54	6.94

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
Micro, Small and Medium Enterprises	0.573	0.419	1.454
Others	14.984	8.730	2.185
Total	15.557	9.149	3.639

Note: The information has been given in respect of such vendors to the extent they could be identified as micro and small enterprises as per the MSMED Act on the basis of information available with the Company.

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	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U27130MH1990PTC058010
Name of the company	MONARCH MULTILAYERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Shubham 47-A, Khare Town, Dharampeth, Nagpur – 440010, Maharashtra, India Email: corporate_ngppm@yahoo.co.in
This form is for	Modification of charge
Charge identification number of the modified	90238402
Type of charge	Immovable property
Particular of charge holder	State Bank of India, Sme Branch, Plot No X-43, Hingna MIDC Industrial Area, Hingna Road, Nagpur – 440016, Maharashtra, India Email: srikanta.pagal.me@sbi.co.in
Nature of description of the instrument creating or modifying the charge	Memorandum for Recording Extension of Mortgage by Deposit of Title Deeds Covering Enhanced Limits And / Or Creation of Equitable Mortgage on Additional Properties For Existing Limits and Enhanced Limits and Additional Facilities
Date of instrument Creating the charge	25.01.2012
Amount secured by the charge	Rs. 31.500 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest 3.50 % above Base rate, present effective being 13.50%. Further the rate will be subject to changes as per the RBI directives and as per the discretion of the bank from time to time. Terms of Repayment Repayment on demand. Subject to review / renewal after 12 months Extent and Operation of the charge At the request of the borrower company, the bank has enhanced overall banking limits upto Rs. 31.500 Millions against Mortgage of the immoveable property i. e Plot No. M-3, M.I.D.C, Hingna, Mouza Nildoh, Nagpur, admeasuring area 2,100 Sq. Mtrs. The Charge stands modified upto Rs. 315.00 Millions
Short particulars of the property charged	Mortgage of the immoveable property i. e Plot No. M-3, M.I.D.C, Hingna, Mouza Nildoh, Nagpur, admeasuring area 2,100 Sq. Mtrs
Particulars of the present modification	At the request of the borrower company, the bank has enhanced overall banking limits upto Rs. 31.500 Millions against Mortgage of the immoveable property i.e. Plot No. M-3, M.I.D.C, Hingna, Mouza Nildoh, Nagpur, admeasuring area 2,100 Sq. Mtrs. The Charge stands modified upto Rs. 31.500 Millions

FIXED ASSETS:

Ø Leasehold Land

Ø Flat

Ø Factory Building

Ø Plant and Machinery

Ø Electrical Installation

Ø Furniture and Fixture

Ø Vehicle

Ø Computers

Ø Office Equipment

Ø Air Conditioner

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 :	JML
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	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.