MIRA INFORM REPORT

Report Date :

11.03.2013

IDENTIFICATION DETAILS

Name :	MULTI POLY FILMS PRIVATE LIMITED
Registered Office :	Flat No.10, 7 Somajiguda, Hyderabad – 500082, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	23.07.1983
Com. Reg. No.:	01-004047
Capital Investment / Paid-up Capital :	Rs. 50.000 millions
CIN No.: [Company Identification No.]	U92111AP1983PTC004047
TAN No.: [Tax Deduction & Collection Account No.]	HYDM09791F
PAN No.: [Permanent Account No.]	AAACM9463C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of extruded polythene films [printed or without print] used for packing milk, oil, ghee etc.
No. of Employees :	25 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (26)

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

Maximum Credit Limit :	USD 52000
Status :	Moderate
Payment Behaviour :	Unknown
Litigation :	Clear
Comments :	Subject is an established company having moderate track record. The management has failed to file its latest financials with the government department. Mr. Balaraju, Accountant provided us the turnover figure which is not verified. From the previous year’s financials we found that the company was closed for last 10 years because of the old and outdated machineries and the company re-commenced its activities from October 2010. Business is active. Payment terms are not verified. The company can be 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 – 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

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 DENIED BY

Name :	Mr. Balaraju
Designation :	Accountant
Contact No.:	91-40-23405078
Date :	09.03.2013

LOCATIONS

Registered Office :	Flat No.10, 7 Somajiguda, Hyderabad – 500082, Andhra Pradesh, India
Tel. No.:	91-40-23405078/23404772
Mobile No.:	91-9866114772 [Mr. Vasant Kumar]
Fax No.:	91-40-23404772
E-Mail :	info@multipolyfilms.com jmplastic@rediffmail.com
Website :	http://www.multipolyfilms.com
Factory :	Survey No.252 & 301 / 1 Part, Phase – 1, IDA, Jeedimetla, Hyderabad – 500055, India
Branch Office :	Flat No 9 3rd Floor, Sridurga Chambers, Thakur Hariprasad Lane Somajiguda, Hyderabad – 500082, Andhra Pradesh, India

DIRECTORS

As on 28.09.2011

Name :	Mr. Vemulapalli Manohar Rao
Designation :	Managing Director
Address :	H. No. 8 / 3 / 966 / 19, Nagarjuna Nagar Colony, Ameerpet, Hyderabad – 500073, Andhra Pradesh, India
Date of Birth/Age :	19.11.1952
Date of Appointment :	00719767
DIN No.:	05.12.1983
Name :	Mrs. Vemulapalli Jyoti
Designation :	Director
Address :	8 / 3 / 966 / 19, Nagarjuna Nagar Colony, Ameerpet, Hyderabad – 500073, Andhra Pradesh, India
Date of Birth/Age :	10.06.1957
Date of Appointment :	05.12.1983
DIN No.:	00719722
Name :	Ms. Vemulapalli Supriya
Designation :	Additional director
Address :	D. No. 40 / 3 / 2 / A, Krishna Nagar, Labbipet, Vijayawada, Andhra Pradesh, India
Date of Birth/Age :	12.09.1984
Date of Appointment :	01.10.2009
DIN No.:	02371252
Name :	Mr. Vemulapalli Gautam
Designation :	Additional director
Address :	8 / 3 / 966 / 19, Nagarjuna Nagar Colony, Ameerpet, Hyderabad – 500073, Andhra Pradesh, India
Date of Birth/Age :	23.08.1980
Date of Appointment :	12.10.2009
DIN No.:	02807761
Name :	Mrs. Jayashree Movva
Designation :	Additional director
Address :	Plot No. 1335/1, Road No. 45/60, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India
Date of Birth/Age :	08.02.1962
Date of Appointment :	14.02.2011
DIN No.:	00376097
Name :	Mr. Venkat Subba Rao Movva
Designation :	Additional director
Address :	Plot No. 1335/1, Road No. 45/60, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India
Date of Birth/Age :	13.05.1953
Date of Appointment :	14.02.2011
DIN No.:	00376067

KEY EXECUTIVES

Name :	Mr. Balaraju
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2011

Names of Shareholders	No. of Shares
Vemulapalli Manohar Rao	975523
Vemulappli Jyoti	713485
V Gautam	270547
M. Supriya	409366
M. V. Subba Rao	983692
M. Jayashree	647387
TOTAL	4000000

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 of extruded polyethylene films [printed or without print] used for packing milk, oil, ghee etc.

Products :

Products Description	ITC Code No.
Multi Layer Films	392010.01

GENERAL INFORMATION

No. of Employees :	25 (Approximately)
Bankers :	State Bank of India, Yellareddyguda Branch, Srinagar Colony Road, Hyderabad – 500 073, Andhra Pradesh, India
Facilities :	Secured Loans: During the year APSFC has sectioned Term Loan of Rs. 143.000 millions to meet the cost of revival of the production facilities. The said loan is secured by equitable mortgage of Leasehold interest in land situated in Jeedimetla relating to MIS V.J Plastics and Polymers, equitable mortgage of building constructed / to be constructed thereon, further secured by hypothecation of Plant and Machinery proposed to be purchased as per the scheme. The said loan is further secured by personal guarantee of directors of the company in their individual capacity. However loan amount has not been disbursed to the company by APSFC till the date of balance sheet.

Banking Relations :	--
Financial Institution :	Andhra Pradesh State Financial Corporation, Ranga Reddy West Branch, Chirag Ali Lane, Abids, Hyderabad – 500001, Andhra Pradesh, India
Auditors :
Name :	Karvy and Company Chartered Accountant
Address :	#2, Bhooma Plaza, Street #4, Avenue 7, Banjara Hills, Hyderabad – 500034, Andhra Pradesh, India

CAPITAL STRUCTURE

After 28.09.2011

Authorized Capital: Rs. 50.000 millions

Issued, Subscribed & Paid-up Capital: Rs. 50.000 millions

As on 28.09.2011

Authorized Capital:

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs. 10/- each	Rs. 40.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
4000000	Equity Shares	Rs. 10/- each	Rs. 40.000 millions

As on 31.03.2010

Authorized Capital:

No. of Shares	Type	Value	Amount
4,000,000	Equity Shares	Rs.10/-each	Rs.40.000 millions

Issued Capital:

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/-each	Rs.10.000 millions

Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
22,500	Equity Shares	Rs.10/-each	Rs. 0.225 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		0.225	0.225	0.225
2] Share Application Money		9.734	0.000	0.000
3] Reserves & Surplus		3.062	3.001	2.928
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13.021	3.226	3.153
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		7.874	0.026	0.026
TOTAL BORROWING		7.874	0.026	0.026
DEFERRED TAX LIABILITIES		0.058	0.058	0.057
TOTAL		20.953	3.310	3.236
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.131	0.144	0.159
Capital work-in-progress		7.303	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	0.000	0.000	0.000
	Sundry Debtors	0.000	0.000	0.000
	Cash & Bank Balances	0.023	0.011	0.011
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	16.392	3.895	3.775
Total Current Assets		16.415	3.906	3.786
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.830	0.307	0.301
	Other Current Liabilities	1.957	0.350	0.351
	Provisions	0.109	0.083	0.057
Total Current Liabilities		2.896	0.740	0.709
Net Current Assets		13.519	3.165	3.077
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		20.953	3.310	3.236

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	0.000	0.000	0.000
		Other Income	0.120	0.120	0.120
		TOTAL (A)	0.120	0.120	0.120
Less	EXPENSES
		Administrative and other Expenses	0.020	0.006	0.006
		TOTAL (B)	0.020	0.006	0.006
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		0.100	0.114	0.114
Less	FINANCIAL EXPENSES (D)		0.000	0.000	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		0.100	0.114	0.114
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.013	0.015	0.017
	PROFIT BEFORE TAX (E-F) (G)		0.087	0.099	0.097
Less	TAX (I)		0.026	0.026	0.029
	PROFIT AFTER TAX (G-I) (J)		0.061	0.073	0.068
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		1.885	1.812	1.744
	BALANCE CARRIED TO THE B/S		1.946	1.886	1.812
	Earnings Per Share (Rs.)		2.71	--	--

Particulars	31.03.2012
Sales Turnover (Approximately)	220.000

The above information has been parted by Mr. Balaraju.

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	50.83	60.83	56.67
Return on Total Assets (PBT/Total Assets}	(%)	0.52	2.44	2.46
Return on Investment (ROI) (PBT/Networth)		0.01	0.03	0.03
Debt Equity Ratio (Total Debt/Networth)		0.60	0.01	0.01
Current Ratio (Current Asset/Current Liability)		5.67	5.28	5.34

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%	----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
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	No

UNSECURED LOAN:

(Rs. in Millions)

Unsecured Loan [Rs. in million]	31.03.2010	31.03.2009
From Directors	7.848	0.000
From Shareholders	0.026	0.026
TOTAL	7.874	0.026

OPERATIONS: During the financial year 2009-2010, the company step down manufacturing activities due to adverse manufacturing conditions and the Land and Buildings had been leased out because foreseeing the competition with the competitors with new and latest machinery. If necessary the company can re-start manufacturing activities at any point of time based on manufacturing conditions.

CURRENT YEAR PERFORMANCE: Due to the stoppage of manufacturing activities, there is no production during the financial year 2009-2010.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U92111AP1983PTC004047
Name of the company	MULTI POLY FILMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Flat No. 10, Somajiguda, Hyderabad – 500082, Andhra Pradesh, India
This form is for	Creation of charge
Type of charge	Immovable property Any interest in immovable property Movable property Others
Particular of charge holder	State Bank of India, Yellareddyguda Branch, Srinagar Colony Road, Hyderabad – 500073, Andhra Pradesh, India
Nature of instrument creating charge	1.Agreement of Hypothecation of Goods and Assets Dated 03.01.2011 2.Agreemnt of Mortgage Dated 03.01.2011 3.Agreemnt of Loan for Overall Limit Dated 03.01.2011 4.Sanction Letter
Date of instrument Creating the charge	03.01.2011
Amount secured by the charge	Rs.114.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest – CC: Interest rate applicable to SB-7 i.e. 4.50% above base rate i.e.12.10% p.a Term Loan: Interest rate applicable to SB-7 i.e. 4.70% above base rate i.e.12.35% p.a Terms of Repayment - WC Limits: repayable on demand. Sanction is valid for a period of 12 Months from the date of sanction Term Loan: Repayable in 28 quarterly Installments ( 27 Qly Installments of Rs.02.600 millions, 1st Installment payable in June 2011 followed by last installment Rs.3.800 millions in the Month of June 2018. Margin RM--- 25% SIP---25% FG---25% Receivables(Cover 90Days)--- 40% Letter of Credit ---25% Extent and Operation of the charge - This Charge Operates as the Security for the Due payment limits sanctioned
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Primary: CC: Hypothecation of Stocks and Receivables. TL: Hypothecation of Machinery/Equipment purchased/to be purchased with the Bank Finance. Collateral : EM of 1466.52 Sq.Yds of Industrial site with RCC building (G+2) in S.Nos252 and 301/1 (Part) situated at Block-3, Phase-1, IDA,Jeedimetla,under Qutubullapur notified Industrial Municipality Ranga Reddy District belonging to M/s V.J.Plastics and Polymers (Prop:V.Manohar Rao) EM of 1388 Sq.Yds of Industrial site with RCC building and two Sheds thereon in F.No. 16, Phase - 1, situated at IDA Jeedimetla Village, Ranga REddy District belong to M/s Multi Films Private Limited EM of Land admeasuirng 646 Sq.Yds on Plot No.548-A 11/1, in Survey No.403/1(old) 120 (New) of shaikpet village and S.No.102/1 of Hakimpet village of the jubilee Hills Co-operative House building society situated at Road no.31, Jubilee hills, hyderabad belonging to Smt V Jyothi w/o Sri V Manohar Rao

FIXED ASSETS:

· Freehold Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipments

· Electrical Installations

· Vehicles

· Weighing Machine

· Water Works

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.54.40
UK Pound	1	Rs.81.56
Euro	1	Rs.71.24

INFORMATION DETAILS

Information Gathered by :	PLK
Report Prepared by :	NID

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	2
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	2
--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		26

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.

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