MIRA INFORM REPORT

Report Date :

19.06.2013

IDENTIFICATION DETAILS

Name :	BILLION FLEX (INDIA) PRIVATE LIMITED
Registered Office :	Survey No. 54/1C, Yashkamal Industrial Estate, Baska-Tajpurta Road, Near Village Panelav, Taluka Halol – 389350, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	24.09.1985
Com. Reg. No.:	04-008123
Capital Investment / Paid-up Capital :	Rs.3.546 Millions
CIN No.: [Company Identification No.]	U25209GJ1985PTC008123
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of a Variety of Promotional Multicolor Carry Bags, Sleeves, Shrink Labels, Banglears etc.
No. of Employees :	75 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (29)

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

Maximum Credit Limit :	USD 23600
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is a relatively small company having a moderate track record. There appears some dip in the sales turnover of the company during 2012 and it has incurred loss from its operations. The financial strength of the company is moderate. However4, trade relations are fair. Business is active. Payments terms are slow. The company can considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

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. Assem Shahani
Designation :	Director
Contact No.:	91-9099039389
Date :	12.06.2013

LOCATIONS

Registered Office :	Survey No. 54/1C, Yashkamal Industrial Estate, Baska-Tajpurta Road, Near Village Panelav, Taluka Halol – 389350, Gujarat, India
Tel. No.:	Not Available
Mobile No.:	91-9099039389 (Mr. Assem Shahani)
Fax No.:	Not Available
E-Mail :	info@billionflex.com
Website :	www.billionflex.com
Factory :	504, Saffron Complex, Fategunj, Vadodara – 390002, Gujarat, India
Tel. No.:	91-265-2750508
Fax No.:	91-265-2750508
Location :	Rented

DIRECTORS

As on: 28.09.2012

Name :	Mr. Keshavbhai Chandiram Shahani
Designation :	Whole-time Director
Address :	11, Parashwadham Society, New Sama Road , Vadodara - 390 002, Gujarat, India
Date of Birth/Age :	19.05.1956
Date of Appointment :	27.10.1985
DIN No.:	00047322
Name :	Mr. Kanaiyalal Chandiram Shahani
Designation :	Whole-time Director
Address :	11, Parashwadham Society, New Sama Road , Vadodara - 390 002, Gujarat, India
Date of Birth/Age :	27.10.1949
Date of Appointment :	27.10.1985
DIN No.:	00047434
Name :	Mr. Assem Shahani
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 28.09.2012

Names of Shareholders	No. of Shares
Kanaiyalal Chandiram Shahani	14220
Keshavbhai Chandiram Shahani	19865
Ritaben Kanaiyalal Shahani	1375
Total	35460

As on: 28.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of a Variety of Promotional Multicolor Carry Bags, Sleeves, Shrink Labels, Banglears etc.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Wholesalers and End Users

No. of Employees :

75 (Approximately)

Bankers :

• HDFC Bank Limited, Vadodara, Gujarat, India
• City Bank
• Bank of Baroda

Facilities :

Secured Loan	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Long Term Borrowing
Vehicle Loans from State Bank of India (The Loan was taken for the purchase of Hyundai Getz Car under the scheme 'Car Loan to SME Units'. The ban was to be repaid in 60 eluted monthly installments of Rs 5660.)	--	0.077
Short Term Borrowing
Loans repayable on demand
Cash Credit from Stale Bank of India	4.229	4.241
Working Capital loan is granted against primary security of hypothecation if stocks and book debts. Collateral Security - Equitable mortgage over factory land and building siluated at survey No 54/1/B and 54/1/C situated at YashKamal Industrial estate, Panelav, Halol, Panchmahal. Gjarantee - Personal guarantee of all 3 directors Shri Kanaiyalal Shahani, Shri Kishan Shahani and Shri Keshav Shahani
Total	4.229	4.318

Banking Relations :

--

Auditors :

Name :

Jitesh P. Shah Sanghvi and Company

Chartered Accountants

Address :

2. Samarpam, 26, Haribhakti Colony, Race Course Clrcle, Vadodara, Gujarat, India

Tel No.:

91-0265-2337084

Fax No.:

91-0265-2354365

PAN No. :

AITPS7518Q

Sister Concern :

Name:	Billion Flexipack
Address:	Survey No. 54/1C, Yashkamal Industrial Estate, Baska-Tajpurta Road, Near Village Panelav, Taluka Halol – 389350, Gujarat, India
Line of Business:	Manufacturer and Exporter of a Variety of Promotional Multicolor Carry Bags, Sleeves, Shrink Labels, Banglears etc.

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
40000	Equity Shares	Rs.100/- each	Rs.4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
35460	Equity Shares	Rs.100/- each	Rs.3.546 Millions

Reconciliation of number of equity shares outstanding at the beginning and at the end of the year

Equity Shares	March 31, 2012
	No. of Shares	Rs. In Millions
Shares outstanding at the beginning of the year	35460	3.546
Issued during the Period	0000	0.000
Shares outstanding at the end of the year	35460	3.546

Term and Rights Attached to equity shares:

The Company has only one class of equity shares having face value of Rs.100 each. Each holder of Equity share is entitled to one vote per share the event of Liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of Preferential amount. The distribution will be in proportion to the Number of equity shares held by Shareholders.

Details of share holding more than 5% shares in the company

Name of the shareholder	No. of Shares	% of holding in the class
Keshav C Shahani	19865	56.00
Kanaiyalal C Shahani	14220	40.10
Kishan C Shahani	0000	0.00
Rita K. Shahani	1375	3.90
Rekha K Shahani	0000	0.00

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	3.546	3.546
(b) Reserves & Surplus	2.369	4.441
(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	0.471	1.001
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
(4) Current liabilities
(a) Short term borrowings	4.229	4.241
(b) Trade payables	0.893	0.629
(c) Other current liabilities	1.579	0.333
(d) Short-term provisions	1.792	0.914
TOTAL	14.879	15.105
II. ASSETS
(1) Non-current assets
(a) Fixed Assets	4.888	5.557
(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	1.872	1.872
(e) Other Non-current assets	0.000	0.000
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	4.676	3.871
(c) Trade receivables	2.575	2.841
(d) Cash and cash equivalents	0.372	0.152
(e) Short-term loans and advances	0.496	0.812
(f) Other current assets	0.000	0.000
TOTAL	14.879	15.105

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.546
2] Share Application Money		0.000
3] Reserves & Surplus		5.028
4] (Accumulated Losses)		0.000
NETWORTH		8.574
LOAN FUNDS
1] Secured Loans		5.753
2] Unsecured Loans		0.431
TOTAL BORROWING		6.184
DEFERRED TAX LIABILITIES		0.000
TOTAL		14.758
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.190
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4.888
	Sundry Debtors	3.610
	Cash & Bank Balances	0.493
	Other Current Assets	0.000
	Loans & Advances	2.954
Total Current Assets		11.945
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.381
	Other Current Liabilities	0.486
	Provisions	1.510
Total Current Liabilities		3.377
Net Current Assets		8.568
MISCELLANEOUS EXPENSES		0.000
TOTAL		14.758

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	17.985	22.662
		Other Income	0.027	0.088
		TOTAL	18.012	22.750	30.547
Less	EXPENSES
		Cost of material consumed	8.960	13.030
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	0.210	0.103
		Employee benefit	5.063	4.551
		Other expenses	4.354	4.140
		TOTAL	18.587	21.824	29.104
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		(0.575)	0.926	1.443
Less	FINANCIAL EXPENSES		0.722	0.616	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		(1.297)	0.310	NA
Less/ Add	DEPRECIATION/ AMORTISATION		0.775	0.897	NA
	PROFIT BEFORE TAX		(2.072)	(0.587)	1.443
Less	TAX		0.000	0.000	0.430
	PROFIT AFTER TAX		(2.072)	(0.587)	1.013
	EARNINGS IN FOREIGN CURRENCY
		Export of goods on FOB Basis	1.070	0.482	0.251
	TOTAL EARNINGS		1.070	0.482	0.251
	Earnings Per Share (Rs.)		(58.43)	(16.55)	28.56

Particulars	31.03.2013
Sales Turnover	20.000

Expected Sales (2013-2014): Rs. 25.000 Millions

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(11.50)	(2.58)	3.31
Net Profit Margin (PBT/Sales)	(%)	(11.52)	(2.59)	NA
Return on Total Assets (PBT/Total Assets}	(%)	(13.92)	(3.89)	7.96
Return on Investment (ROI) (PBT/Networth)		(0.35)	(0.07)	0.05
Debt Equity Ratio (Total Debt/Networth)		0.79	0.65	0.72
Current Ratio (Current Asset/Current Liability)		2.34	5.09	3.54

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
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

UNSECURED LOAN:

Particulars	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Long Term Borrowing
Loans and advances from related parties Terms of Repayment: Not Stipulated	0.471	0.924
Total	0.471	0.924

OPERATIONS:

The total turnover achieved during the year was Rs. 18.013 Millions as compared Rs. 22.750 Millions in the Previous Year. The company's turnover has decreased due to ban on plastic bags in Northern India, Loss for the year was Rs. 2.072 Millions (Previous year loss Rs. 0.587)

FIXED ASSETS:

Land

Building

Plant and Equipment

Furniture and Fixture

Electrical Installation

Vehicles

Office Equipments

Air Conditioner

Compressor and Printers

Cylinders

Dies and Moulds

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.58.45
UK Pound	1	Rs.91.60
Euro	1	Rs.77.91

INFORMATION DETAILS

Information Gathered by :	PLV
Report Prepared by :	ANK

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		29

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

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.