MIRA INFORM REPORT

Report Date :

15.06.2013

IDENTIFICATION DETAILS

Name :	NEC PACKAGING LIMITED
Registered Office :	E-3, Phase II, Industrial Area, Mohali -160055, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	30.05.1995
Com. Reg. No.:	16-016532
Capital Investment / Paid-up Capital :	Rs. 2.568 Millions
CIN No.: [Company Identification No.]	U21029PB1995PLC016532
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer and Exporter of Premium Quality Packaging Items.
No. of Employees :	100 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (44)

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

Maximum Credit Limit :	USD 73000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. The company can be considered 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 – 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

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. Devendra
Designation :	Accountant
Contact No.:	91-172-5095453
Date :	10.06.2013

LOCATIONS

Registered Office / Factory :	E-3, Phase II, Industrial Area, Mohali -160055, Punjab, India
Tel. No.:	91-172-5095453 / 5094529 / 5090358
Fax No.:	91-172-5090358
E-Mail :	md@necpackaging.com necpack@connectzone.in
Website :	http://www.necpackagingltd.com
Location :	Owned

DIRECTORS

As on : 29.09.2012

Name :	Mr. Vivek Kumar Gupta
Designation :	Managing Director
Address :	H 20, Sector 4, Chandigarh – 160004, India
Date of Birth/Age :	20.02.1957
Date of Appointment :	30.05.1995
Din No.:	01373025
Name :	Mrs. Promila Gupta
Designation :	Director
Address :	H 20, Sector 4, Chandigarh – 160004, India
Date of Birth/Age :	11.03.1960
Date of Appointment :	01.04.2005
Din No.:	01675170
Name :	Mrs. Mehak Krishan Gupta
Designation :	Director
Address :	H 20, Sector 4, Chandigarh – 160004, India
Date of Birth/Age :	02.05.1983
Date of Appointment :	01.04.2005
Din No.:	01921753
Name :	Mr. Varun Kumar
Designation :	Director
Address :	20 Sector 4, Chandigarh – 160001, India
Date of Birth/Age :	14.08.1986
Date of Appointment :	12.01.2009
Din No.:	02497699

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on ; 29.09.2012

Names of Shareholders	No. of Shares
Vivek Kumar	124020
Promila Kumar	85850
Varun Kumar	4500
Mehak Krishan	100
Vibha Gupta	100
Sanjiv Jain	100
Rajesh Jain	100
Super Agro Farms Private Limited, India	22000
Dr. Megha Kansal	20000
Total	256770

As on ; 28.03.2012

Names of Allotee	No. of Shares
Vivek Kumar	29250
Varun Kumar	3500
Total	32750

Equity Share Break up (Percentage of Total Equity)

As on : 29.09.2012

Category	Percentage
Bodies corporate	8.57
Directors or relatives of Directors	83.64
Other top fifty shareholders	7.79
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Premium Quality Packaging Items
Products :	· Printed Corrugated Cartons / Rolls / Sleeves / Sheets · Printed Die Cut Cartons · Laminated Pouches and Bags · Printed / Unprinted Laminated Films · Printed Laminated Wrappers · Blister Foils and Bulk Drug Bags · Printed PVC Shrink Labels · Triple Laminated Bags Aluminium Foil Bags
Terms :
Selling :	Credit
Purchasing :	Credit

GENERAL INFORMATION

Suppliers :

· Adhesives India

· Balaji Traders

Customers :

Wholesalers and Retailers

No. of Employees :

100 (Approximately)

Bankers :

State Bank of Patiala, SME Branch, S.C.O., 34-35, Phase VII, Industrial Area, Mohali-160055, Punjab, India

Facilities :

(Rs in Millions)

SECURED LOANS	31.03.2012	31.03.2011
Term Loan From Bank
-- State Bank of Patiala	0.047	0.905
-- Car Loan from Shop Bank	0.808	1.009
-- car Loan from ICICI Bank	0.045	0.215
Working capital loan from Bank
-- State Bank of Patiala	12.633	10.366
Total	13.533	12.495

Auditors :
Name :	Kansal Singla and Associates Chartered Accountants
Address :	S.C.O., 80-81, 4^th Floor, Sector 17 C, Chandigarh – 160017, India
Tel. No.:	91-172-5078401 / 02
Fax No.:	91-172-5072903
Web Site :	www.cakansalsingla.com
Pan No.:	AAAFK9144R

CAPITAL STRUCTURE

As on : 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
350000	Equity Shares	Rs.10/- each	Rs.3.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
256770	Equity Shares	Rs.10/- each	Rs.2.568 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	2.568	2.240
(b) Reserves & Surplus	15.866	11.829
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
(3) Non-current liabilities
(a) long-term borrowings	0.900	2.129
(b) Deferred tax liabilities (Net)	1.040	0.871
(c) Other long term liabilities	0.048	0.048
(d) long-term provisions	0.000	0.000
(4) Current liabilities
(a) Short term borrowings	12.633	10.366
(b) Trade payables	6.166	9.025
(c) Other current liabilities	1.121	0.733
(d) Short-term provisions	0.329	0.324
TOTAL	40.671	37.565
ASSETS
(1) Non-current assets
(a) Fixed Assets	0.000	0.000
(i) Tangible assets	11.344	10.770
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	0.000	0.000
(e) Other Non-current assets	0.671	0.385
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	14.023	13.843
(c) Trade receivables	13.065	10.734
(d) Cash and cash equivalents	0.518	0.120
(e) Short-term loans and advances	1.016	1.648
(f) Other current assets	0.034	0.065
TOTAL	40.671	37.565

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		1.995
2] Share Application Money		0.000
3] Reserves & Surplus		9.693
4] (Accumulated Losses)		0.000
NETWORTH		11.688
LOAN FUNDS
1] Secured Loans		13.291
2] Unsecured Loans		0.000
TOTAL BORROWING		13.291
DEFERRED TAX LIABILITIES		0.733
TOTAL		25.712
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.338
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERRED TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.140
	Sundry Debtors	10.044
	Cash & Bank Balances	0.566
	Other Current Assets	0.000
	Loans & Advances	0.795
Total Current Assets		27.545
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8.957
	Other Current Liabilities	0.841
	Provisions	0.385
Total Current Liabilities		10.183
Net Current Assets		17.362
MISCELLANEOUS EXPENSES		0.012
TOTAL		25.712

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	71.581	73.029	52.166
		Other Income	0.141	0.048	3.105
		TOTAL	71.722	73.077	55.271
Less	EXPENSES
		Cost of Material Consumed	57.154	56.263
		Changes in Inventories of Goods	(1.223)	0.823
		Employees Benefits	6.226	6.125
		Loss on sale of Assets	0.000	0.209
		Other Expenses	4.888	5.802
		TOTAL	67.045	69.222	51.192
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		4.677	3.855	4.079
Less	FINANCIAL EXPENSES		2.320	1.670	1.856
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		2.357	2.185	2.223
Less/ Add	DEPRECIATION/ AMORTISATION		0.766	0.628	0.526
Less	PRIOR PERIOD ITEMS		0.003	0.000	0.000
	PROFIT BEFORE TAX		1.588	1.557	1.697
Less	TAX		0.498	0.402	0.452
	PROFIT AFTER TAX		1.090	1.155	1.245
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		3.598	2.443	1.198
	BALANCE CARRIED TO THE B/S		4.688	3.598	2.443
	Earnings Per Share (Rs.)		4.25	5.16	6.24

Particulars	31.03.2013
Sales Turnover (Approximately)	70.000 (Due to market fluctuation)

Expected Sales (2013-2014) : Rs. 100.000 Millions

The above information has been parted by Mr. Devendra (Accountants)

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.52	1.58	2.25
Net Profit Margin (PBT/Sales)	(%)	2.22	2.13	3.25
Return on Total Assets (PBT/Total Assets}	(%)	3.90	4.14	4.73
Return on Investment (ROI) (PBT/Networth)		0.09	0.11	0.15
Debt Equity Ratio (Total Debt /Networth)		0.73	0.89	1.14
Current Ratio (Current Asset/Current Liability)		1.42	1.29	2.70

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	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%	Yes
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	No
19]	Payments terms	Yes
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

FINANCIAL RESULTS :

During the year, the turnover of the company is of Rs. 71.723 Millions as against Rs. 73.077 Millions during the previous year. The company earned the net profit of Rs. 1.090 Millions as against the profit of Rs. 1.156 Millions during the previous year. With the increase in operations, the Directors are hopeful to give better results in terms of sales / profitability of the company in the years to come.

BANKERS CHARGES REPORT AS PER REGISTRY :

Corporate identity number of the company	U21029PB1995PLC016532
Name of the company	NEC PACKAGING LIMITED
Address of the registered office or of the principal place of business in India of the company	E 3, Phase Industrial Area, Mohali Ropar, Punjab, India Email : necpack@connectzone.in
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80044363
Type of charge	· Book Debts · Movable Property
Particular of charge holder	State Bank Of Patiala, SME Branch, Phase VII, Mohali - 160055, Punjab, India Email : K.C.BARIA@SBP.CO.IN
Nature of instrument creating charge	Letter of Arrangement
Date of instrument Creating the charge	24.02.2012
Amount secured by the charge	Rs. 22.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest : 2.50% ABOVE BASE RATE Terms of repayment : ON DEMAND Margin : 25% Extend and operation of the charge : 100%
Short particulars of the property or asset(s) charged (including complete address and location of the property)	First charge on all the current assets of the company present and future Equitable mortgage of E-3, Phase - 2, Mohali, Punjab, India
Date of instrument modifying the charge	25.09.2009
Particulars of the present modification	Enhancemnt of CC limit from Rs. 16.000 Millions to Rs. 22.500 Millions and renewal of LC limit.

FIXED ASSETS :

· Building

· Air Conditioner

· Cooker and fans

· Crane and Lift

· Dryer

· Electric Installation

· Furniture and Fixtures

· Machinery

· Office Equipment

· 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. 57.74
UK Pound	1	Rs. 90.64
Euro	1	Rs. 77.02

INFORMATION DETAILS

Information Gathered by :	NYN
Report Prepared by :	NIS

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	4
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		44

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.