MIRA INFORM REPORT

Report Date :

02.08.2014

Tel No.:	9914725260
Email ID :	deesh1960@yahoo.com

IDENTIFICATION DETAILS

Name :	DEESH PRINT PACK LIMITED
Registered Office :	43 /1 Sat Kartar Nagar, Jalandhar City - 144005, Punjab
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	01.12.1999
Com. Reg. No.:	16-023126
Capital Investment / Paid-up Capital :	Rs.6.580 Millions
CIN No.: [Company Identification No.]	U55109PB1999PLC023126
TIN No.:	03171041982
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Polythene Bags.
No. of Employees :	40 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (28)

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

Maximum Credit Limit :	USD 41000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is a small company in its field having moderate track. Its scale of activities are limited. The company possesses a moderate financial profile marked by low networth base along with slow realization of debtors and accrued payables during FY 2013. Management has reported a drastic dip in its net profitability leading to low profit margin and cash inflows in turn increasing the intensity of borrowing during the year under review. However, trade relations seems to be fair. Business is active. Payment terms are reported to be slow but correct. The company can be considered for small to medicore 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.

HENKEL RATING

HENKEL’s Rating :

400 (High risk) 450 (Very high risk)

Credit Rating	Henkel Rating (Customer Risk Assesment- CRA)
Mira Inform	Risk Category	Credit Limit	Description
Aaa	100	Inter Company, credit limit not required	Very low risk (blue ships)
Aa	200, 201	(120% of Gross Annualised Sales/365)*Credit Term.	Low risk
A	300, 301	(100% of Gross Annualised Sales/365)*Credit Term.	Moderate risk
Ba	350	(90% of Gross Annualised Sales/365)*Credit Term.	Significant risk
B	400	(80% of Gross Annualised Sales/365)*Credit Term.	High risk
	450		Very high risk
Ca or C	500*	NIL/ Legal/ Bad/No Transaction	Doubtful accounts
	007*	NIL	Small unrated customers
	009*	NIL	Inactive customers
	999*	Initially First Invoice vales, CRA will be done and based on report the CL would get revised.	New customer

ECGC Country Risk Classification List – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
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

N E W S

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

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 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Navdish Singh
Designation :	Managing Director
Contact No.:	91-9914725260
Date :	29.07.2014

LOCATIONS

Registered Office :	43 /1 Sat Kartar Nagar, Jalandhar City - 144005, Punjab, India
Tel. No.:	91-1824-241114
Mobile No.:	91-9914725260 (Mr. Navdish Singh)
Fax No.:	91-1824-241114
E-Mail :	deesh1960@yahoo.com
Factory :	Jalandhar – Phaswana, NH – I, Maheru Road, Village Chaheru, Near Lovely University, Jalandhar, - 142628, Punjab, India

DIRECTORS

As on 30.09.2013

Name :

Mr. Navdish Singh

Designation :

Managing Director

Address :

3/2, Sat Kartar Nagar, Jalandhar City - 144005, Punjab, India

Date of Birth/Age :

03.03.1960

Date of Appointment :

01.12.1999

DIN No.:

00151484

Name :

Mrs. Daljit Kaur

Designation :

Director

Address :

3/2, Sat Kartar Nagar, Jalandhar City - 144005, Punjab, India

Date of Birth/Age :

10.10.1961

Date of Appointment :

01.12.1999

DIN No.:

00288727

Name :

Mrs. Ramanjit Kaur

Designation :

Additional Director

Address :

3/2, Sat Kartar Nagar, Jalandhar City - 144005, Punjab, India

Date of Birth/Age :

05.02.1971

Date of Appointment :

30.09.2013

DIN No.:

06610879

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	U55109PB1999PLC023126	DEESH PRINT PACK LIMITED	Director	30/09/2013	28/03/2013	-	Active	NO

MAJOR SHAREHOLDERS

As on 30.09.2013

Names of Shareholders	No. of Shares
Navdish Singh	31300
Daljit Kaur	14100
Ashok Kumar	2100
Gurvinder Singh	50
Ramanjit Kaur	150
Girpal Kaur	850
Ashok Gupta	1000
Deep Shikka	2500
Pritam Kaur	1000
Jasbir Kaur	1500
Harmeet Singh	200
Harneet Kaur	750
Hardeep Singh Chandhok	900
Surjit Kaur Dhingra	250
Harnarinder Singh Dhingra	500
Amrik Singh Bindra	1000
K.L. Gulati	1000
Mittar Pal Singh Nagi	500
Anil Dutta	200
Usmeet Singh	150
Naveen Kumar	200
Balaji Singh	2000
Amandeep Matta	3600
Total	65800

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2013

Category	Percentage
Directors or relatives of Directors	82.52
Other top fifty shareholders	17.48
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Polythene Bags.
Imports :
Products :	Raw Material
Countries :	· Singapore · Saudi Arabia
Terms :
Selling :	Credit
Purchasing :	Credit

GENERAL INFORMATION

Suppliers :

· Amit Vinayak and Associates

· Adroit gravure Solutions Private Limited

· Amexpress Worldwide Logistics

· Arjun Flour and Oil Industries

· G.B. Tolls and Forgings

· Himalya Rice

· Indian Adhesive and Chemicals

· Kayson Thinners and Chemicals

· Micro Inks Limited

· Natural Bio Products (Redg.)

· Rajiv Plastic Industries

· Rasario Cosmetics Private Limited

· Rishab Enterprises

Customers :

· Aggarwal Trading Company

· Apex Electronics

· Arti Roller Flour Industries Limited

· Basant Metal Works

· Blue Bird Packing

· G.S. Plastic Inds.

· Gardex

· Hoshirpur Roller Flour Mills Private Limited

· Jai Vardhaman Foods

· JMP Industries

· Jupitor Metal Industries

· Jupitor Metal Industries Regd.

· Kartar Rolling Flour Mills Private Limited

· Kartar International Private Limited

· Lakshay International Private Limited

· Markfed Modern Rice Mills

· Pagro Foods Limited

· Sukh International

No. of Employees :

40 (Approximately)

Bankers :

Oriental Bank of Commerce, SSI Branch, Industrial Area, Jalandhar City - 144003, Punjab, India

Facilities :

SECURED LOANS	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Term Loan form bank
ICICI Bank Car Loan	0.000	0.199
Axis Bank # 12020	0.000	0.136
Axis Bank 18650	0.000	0.212
Axis Bank 26100	0.157	0.432
OBC MTL A/C	0.000	0.000
OBC Building Loan	1.691	1.830
From Others
Tata Capital Housing Finance Limited	4.823	0.000
Short Term Borrowings
Loans repayable on demand
From bank
OBC C/C	6.008	7.431
Total	12.679	10.240

Notes:

Long Term Borrowings

Nature of security

Term loans

1) ICICI Bank Car Loan

Secured by way of hypothecation of car Vento as per loan agreement executed on 15.03.2011.

2) Axis Bank Vehicle Loan

a) Secured by way of hypothecation of car Polo as per loan agreement executed on 16.03.2011.

b) Secured by way of hypothecation of car Vento as per loan agreement executed on 28.02.2011.

c) Secured by way of hypothecation of car Verna as per loan agreement executed on 20.09.2011.

3) Oriental Bank of Commerce Term Loan

Security

i) Equitable mortgage of factory lands and building at Village Chaheru in the name of the company.

ii) Equitable mortgage of factory lands and building at Village Chaheru in the name of Mr. Navdish Singh.

4) Tata Capital Housing Finance Limited

Business loan against property, property in the name of Navdish Singh and Mrs. Daljit Kaur 376, Guru Teg Bahadur Nagar, Jalandhar

Personal guarantees

Mr. Navdish Singh, Mrs. Daljeet Kaur (Both directors of the company)

Short Term Borrowings

Nature of Securities

Working capital limits

Secured by way of :

a) Hypothecation of stocks and receivable

Collateral Security

i) Equitable mortgage of factory lands and building at Village Chaheru in the name of the company.

ii) Equitable mortgage of factory lands and building at Village Chaheru in the name of Mr. Navdish Singh.

Banking Relations :	--
Auditors :
Name :	Seth Anil Kumar and Associates Chartered Accountants
Address :	Opposite Andhra Bank, Near Basti Adda Chowk, G.T. Road, Jalandhar – 144001, Punjab, India
PAN No.:	ABNPS2363L

CAPITAL STRUCTURE

As on 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
75000	Equity Shares	Rs.100/- each	Rs.7.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
65800	Equity Shares	Rs.100/- each	Rs.6.580 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

FINANCIAL DETAILS FILE ATTACHED

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

DEBT EQUITY RATIO

Particular	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Share Capital	6.580	6.580	6.580
Reserves & Surplus	2.596	3.280	3.628
Net worth	9.176	9.860	10.208
long-term borrowings	3.185	3.807	8.794
Short term borrowings	6.415	7.431	6.008
Total borrowings	9.600	11.238	14.802
Debt/Equity ratio	1.046	1.140	1.450

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	52.951	47.924	35.526
		(9.494)	(25.870)

NET PROFIT MARGIN

Net Profit Margin	31.03.2011	31.03.2012	31.03.2013
	Rs. In Millions	Rs. In Millions	Rs. In Millions
Sales	52.951	47.924	35.526
Profit	1.195	0.684	0.348
	2.26%	1.43%	0.98%

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 four 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	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 LOANS:

Particulars	31.03.2013 Rs. In Millions	31.03.2012 Rs. In Millions
Long Term Borrowings
Guneet Kaur	0.011	0.010
Navdish Singh	2.112	0.988
Total	2.123	0.998

CORPORATE INFORMATION:

The company having registered office 43 /1 Sat Kartar Nagar, Jalandhar City - 144005, Punjab, India and works at Village Meheru, Tehsil Phagwar, District Kapurthala, Punjab is engaged in the business of manufacturing of polythene bags since 1999.

INDEX OF CHARGE:

Sr. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10256618	02/12/2010	2,200,000.00	Oriental Bank Of Commerce	SSI Branch, Industrial Area, Jalandhar City, Punjab - 144003, India	B01942606
2	10059250	02/06/2007	990,000.00	Oriental Bank Of Commerce	SSI Branch, Industrial Area, Jalandhar City, Punjab - 144003, India	A18378448
3	10050572	09/03/2007	600,000.00	Oriental Bank Of Commerce	SSI Branch, Industrial Area, Jalandhar City, Punjab - 144003, India	A13501747
4	10029374	05/12/2006	600,000.00	Oriental Bank Of Commerce	SSI Branch, Industrial Area, Jalandhar City, Punjab - 144003, India	A08191595
5	90182832	13/03/2001	2,590,000.00	Oriental Bank Of Commerce	GGI Industreal Area, Jalandhar, Punjab, India	-
6	90182831	02/06/2007 *	1,000,000.00	Oriental Bank Of Commerce	SSI Branch, Industrial Area, Jalandhar City, Punjab - 144003, India	A18380907

*Date of modification Charges

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Computer

· Vehicles

· Furniture and Fixture

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 records 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.60.85
UK Pound	1	Rs.102.69
Euro	1	Rs.84.46

INFORMATION DETAILS

Information Gathered by :	PLK
Analysis Done by :	SUB
Report Prepared by :	VNT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.