MIRA INFORM REPORT

Report Date :

25.09.2013

IDENTIFICATION DETAILS

Name :	HI GLO HOLO IMAGES PRIVATE LIMITED
Registered Office :	Village Rauni, Nabha Road, Near Bhakhra Bridge, Patiala- 147 001, Punjab
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	07.02.1995
Com. Reg. No.:	16-15749
Capital Investment / Paid-up Capital :	Rs.3.310 Millions
CIN No.: [Company Identification No.]	U22219PB1995PTC015749
TAN No.: [Tax Deduction & Collection Account No.]	PTLH10766A
PAN No.: [Permanent Account No.]	AAACH4407R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Holograms, Holographic Solutions and labels.
No. of Employees :	14 (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 29000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a relatively small company having moderate track record. There appears losses from operating activity during financial year 2012. However, trade relations are fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some cautions.

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

INDIAN ECONOMIC OVERVIEW

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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. Arun Gupte
Designation :	Director
Contact No.:	91-9814423278
Date :	19.09.2013

LOCATIONS

Registered Office / Factory :	Village Rauni, Nabha Road, Near Bhakhra Bridge, Patiala- 147 001, Punjab, India
Tel. No.:	91-175-2366852/6536852 / 2365691
Mobile No.:	91-9814423278 (Mr. Arun)
Fax No.:	91-175-2366998
E-Mail :	higlo_images@sancharnet.com ajaykcs@gmail.com higlo_images@sify.com
Area :	2500 Sq. ft.
Location :	Owned

DIRECTORS

As on: 29.09.2012

Name :

Mr. Arun Gupta

Designation :

Managing Directors

Address :

# Gobind Cotton Factory, Railway Road, Nabha, Punjab, Inida

Date of Birth/Age :

09.01.1951

Qualification :

M. sc.

Date of Appointment :

07.02.1995

DIN No.:

00017210

Name :

Mr. Sandeep Gupta

Designation :

Director

Address :

12, Urban Estate, Phase – 1, Patiala – 147001, Punjab, Inida

Date of Birth/Age :

07.07.1968

Qualification :

B. Tech , M.E.

Date of Appointment :

01.04.1995

DIN No.:

00017253

Name :

Mrs. Suman Gupta

Designation :

Director

Address :

32, Green View Colony, Rajbaha Road, Patiala - 147001, Punjab, Inida

Date of Birth/Age :

14.08.1951

Qualification :

B. Sc

Date of Appointment :

07.02.1995

DIN No.:

01132083

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U22219PB1995PTC015749	HI GLO HOLO IMAGES PRIVATE LIMITED	Director	07/02/1995	07/02/1995	-	Active	NO
2	U74899DL1993PTC053336	VISHAL HOLO SOLUTIONS PRIVATE LIMITED	Director	01/07/2004	01/07/2004	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

Names of Shareholders	No. of Shares
Arun Kumar Gupta	67630
Suman Gupta	76050
Parul Chaudhary	32000
Sunita Gupta	6700
Sandeep Gupta	16550
Rajan Singla	16550
Aditya Jindal	16550
Madhur Gupta	670
Sheena Gupta	200
Vinod Gupta	13500
Shikha Gupta	750
Jagatbir Singh Kang	16550
P K Chowdhary	16550
Piyush chowdhary	1100
Arvind Kumar	33100
Abhimanyu	4150
Ambrish	10250
Vidya Sagar	2020
Dayawanti	130
Total	331000

As on: 29.09.2012

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 Holograms, Holographic Solutions and labels.
Products :	Ø Tamper Evident Holograms Ø Non-Tamper Evident/Promotional Holograms Ø Hot Stamp Holograms Ø Hologram Strips/Pharma Hologram Seals Ø Over Printed Holograms/Instagrams Ø Transparent Tamper Evident Holograms Ø Holograms with Serial Numbering Ø Holograms for Textiles/Garments (Stitchable Holograms) Ø Combination Paper/PVC Labels with Holograms Ø Hologrammed Shrink Sleeves/Shrink Labels Ø Hologram Induction Seals/Wads Ø Plain/Holographic Scratch off Labels Ø Hologram Scratch Cards/Gift Coupons Ø Plain/Holographic Write and Protect Labels Ø Holographic General Pattern/Geometric Design/Custom Design Films Ø Transparent Holographic Labels Ø PU Dome Labels (with/without holograms) Ø Frangible Vinyl Labels (Tamper Proof) Ø Metal Labels (with/without holograms
Exports :
Products :	Holograms Holographic Solutions labels
Countries :	USA Middle East Far East Europe UK UAE Europe, Asian Country
Imports :
Products :	Raw Material
Countries :	USA China
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Holograms	Panels P.M	530000	5300000	2181604

GENERAL INFORMATION

Suppliers :

• Pidilite
• Bajaj Holographic Private Limited
• Chemline India Limited
• Delhi Metal and Chemical
• Enanl Liason and Mking
• Fedex Express
• Giriraj Foils
• Gupta Trading
• Label Grace
• Sewak Prints
• TNT India Private Limited
• Unique Enterprises

Customers :

Retailers and End Users

• Abhishek Graphics
• Abhishek Industries Limited
• Alpine Poly Rub Private Limited
• Anand Industries Pta
• Cyco Exports Private Limited
• Elder Health Care Limited
• Nakoda Meters
• Naam Biotech
• Print Pack, Delhi
• Shree Krishan Graphics
• Sprint Packers
• VHS Papers Products
• Visine instruments, Ambala
• Sheetal Cosmetics
• Sprint Packers

No. of Employees :

14 (Approximately)

Bankers :

Ø State Bank of Patiala, Mall Road Branch, Patiala, Punhab, India

Ø State Bank of India

Facilities :

CC: Rs.1.800 Millions

Secured Loan	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Long Term Borrowing
Loan repayable on demand:
From banks (Cash Credit) Cash and credit from state bank of Patiala is secured by mortgage of land and building Hypothetication of stock of raw material, finished goods and stores and spares.	0.722	0.658
Total	0.722	0.658

Banking Relations :	--
Auditors :
Name :	Goyal Mahajan and Company Chartered Accountants
Address :	Leela Bhawan Complex, Patiala – 147001, Punjab, India
PAN No. :	AAVPG3334Q

CAPITAL STRUCTURE

As on: 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
400000	Equity Shares	Rs.10/- each	Rs.4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
331000	Equity Shares	Rs.10/- each	Rs.3.310 Millions

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	3.310	3.310
(b) Reserves & Surplus	4.123	4.402
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	7.433	7.712
(3) Non-Current Liabilities
(a) long-term borrowings	1.152	1.527
(b) Deferred tax liabilities (Net)	0.604	0.808
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	1.222	0.873
Total Non-current Liabilities (3)	2.978	3.208
(4) Current Liabilities
(a) Short term borrowings	0.722	0.658
(b) Trade payables	1.436	1.446
(c) Other current liabilities	0.828	0.760
(d) Short-term provisions	0.067	0.000
Total Current Liabilities (4)	3.053	2.864
TOTAL	13.464	13.784
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	5.913	6.377
(ii) Intangible Assets	0.037	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	0.204	0.180
(e) Other Non-current assets	0.259	0.259
Total Non-Current Assets	6.413	6.816
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	1.630	1.657
(c) Trade receivables	2.994	3.034
(d) Cash and cash equivalents	1.924	1.755
(e) Short-term loans and advances	0.498	0.518
(f) Other current assets	0.005	0.004
Total Current Assets	7.051	6.968
TOTAL	13.464	13.784

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		3.310
2] Share Application Money		0.000
3] Reserves & Surplus		4.181
4] (Accumulated Losses)		0.000
NETWORTH		7.491
LOAN FUNDS
1] Secured Loans		0.091
2] Unsecured Loans		1.987
TOTAL BORROWING		2.078
DEFERRED TAX LIABILITIES		0.915
TOTAL		10.484
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.819
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.391
	Sundry Debtors	3.276
	Cash & Bank Balances	2.109
	Other Current Assets	0.211
	Loans & Advances	0.653
Total Current Assets		7.640
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3.089
	Other Current Liabilities	0.000
	Provisions	0.886
Total Current Liabilities		3.975
Net Current Assets		3.665
MISCELLANEOUS EXPENSES		0.000
TOTAL		10.484

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income
		Other Income
		TOTAL	10.523	10.949	9.137
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	10.073	9.858	8.357
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		0.450	1.091	0.780
Less	FINANCIAL EXPENSES		0.149	0.062	0.057
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		0.301	1.029	0.723
Less/ Add	DEPRECIATION/ AMORTISATION		0.707	0.697	0.665
	PROFIT/(LOSS) BEFORE TAX		(0.406)	0.332	0.058
Less	TAX		(0.126)	0.111	0.104
	PROFIT/(LOSS) AFTER TAX		(0.280)	0.221	(0.046)
	EXPORT EARNING		NA	4.228	3.364
	Earnings/(Loss) Per Share (Rs.)		(0.82)	0.67	(0.14)

Particulars	31.03.2013
Sales Turnover (Approximately)	11.800

Expected Sales (2013-2014): Rs. 20.000 Millions

The above information has been parted by Mr. Arun Gupte

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(2.66)	2.02	(0.50)
Return on Total Assets (PBT/Total Assets}	(%)	(3.01)	2.41	0.40
Return on Investment (ROI) (PBT/Networth)		(0.05)	0.04	0.01
Debt Equity Ratio (Total Debt /Networth)		0.25	0.28	0.28
Current Ratio (Current Asset/Current Liability)		2.31	2.43	1.92

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 four 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	No
17]	Major suppliers	Yes
18]	Major customers	Yes
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

UNSECURED LOAN:

Particulars	31.03.2012 [Rs. in Millions]	31.03.2011 [Rs. in Millions]
Long Term Borrowing
From related parties	1.152	1.527
Total	1.152	1.527

INDEX CHARGES:

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	90173599	28/05/2005 *	968,000.00	STATE BANK OF INDIA	MALL ROAD BRANCH, PATIALA, Punjab, INDIA	-
2	90309068	28/05/2005 *	968,000.00	STATE BANK OF PATIALA	MALL ROAD BRANCH, PATIALA, Punjab, INDIA	-

* Date of charge modification

FIXED ASSETS:

Ø Land and Land Development

Ø Building

Ø Office Equipments

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Computer

Ø Laboratory Equipment

Ø Miscellaneous Assets

Ø Electricals

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.62.66
UK Pound	1	Rs.100.46
Euro	1	Rs.84.59

INFORMATION DETAILS

Information Gathered by :	SVA
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	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	4
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--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.