MIRA INFORM REPORT

Report Date :

18.11.2006

IDENTIFICATION DETAILS

Name :	FORMULATED POLYMERS LIMITED
Registered Office :	# 59, SIDCO Industrial Estate, Thirumazhisai, Chennai – 602 107, Tamilnadu
Country :	India
Financials (as on) :	31.03.2005
Date of Incorporation :	15.07.1991
Com. Reg. No.:	18-21129
CIN No.: [Company Identification No.]	U52599TN1991PLC021129
TAN No.: [Tax Deduction & Collection Account No.]	CHEF02104E
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturers of Formpoly Nylon, Formpoly Polypropylene Compoundry, Formpoly PPO, Formpoly ABS, Formpoly SAN and Formpoly Bunds and alloys.

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Maximum Credit Limit :	USD 50000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track records. Directors are reported as experienced, respectable and having satisfactory means of their own. Their trade relations are fair. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	# 59, SIDCO Industrial Estate, Thirumazhisai, Chennai – 602 107, Tamilnadu, India
Tel. No.:	91-44-26280171 / 26811275 / 26811236 / 1237
Mobile No :	91-9840821001 / 9840048334
Fax No.:	91-44-26280174 / 26811275
E-Mail :	formpoly@vsnl.com
Website :	http://www.formulatedpolymers.com
Area :	21000 sq. ft.
Location :	Owned
Factory 1 :	57-60, SIDCO Industrial Estate, Thirumazhisai, Chennai – 602 107, Tamilnadu
Tel. No.:	91-44-26811275/0775/3091/26811236/7/8
Fax No.:	91-44-26810960/26811275
Area :	60000 sq. ft.
Location :	Owned
Marketing office:	Old No. AH-135/ New No. AH 37, 4^th Street, Shanthi Colony, Anna Nagar, Chennai – 600 040, Tamilnadu
Tel. No.:	91-44-26280171/0171
Fax No.:	91-44-26280174
E-Mail :	formpoly@vsnl.com / techserv@formulatedpolymers.com
Website :	http://www.formulatedpolymers.com
Branches :	Located at :- · Coimbatore Tel. 91-422-3229904 E-mail. cbe@formulatedpolymers.com · Bangalore, Karnataka Cell. 91-80-9845263822 E-mail. bangalore@formulatedpolymers.com · New Delhi Tel. 91-11-33186339 E-mail. delhi@formulatedpolymers.com · Pune, Maharashtra Tel. 91-20-31003869 E-mail. pune@formulatedpolymers.com

DIRECTORS

Name :	Mr. V. Sekar
Designation :	Director
Address :	No. 29, V. V. Giri Street, Sathya Garden Saligramam, Chennai – 600093
Date of Birth/Age :	25.05.1960
Qualification :	B. Tech.
Experience :	24 Years
Date of Appointment :	15.07.1991
Name :	Mr. N. Mohan
Designation :	Director
Address :	65, Second East Cross Street, Amaravathinagar, Arumbakkam, Chennai – 600106
Date of Birth/Age :	07.06.1953
Qualification :	B. E.
Experience :	30 Years
Date of Appointment :	15.07.1991
Name :	Mrs. S. Sunganthi
Designation :	Director
Address :	No. 29, V. V. Giri Street, Sathya Garden Saligramam, Chennai – 600093
Date of Birth/Age :	12.03.1967
Experience :	6 Years
Date of Appointment :	02.06.2000
Name :	Mrs. M. Padma
Designation :	Director
Address :	65, Second East Cross Street, Amaravathinagar, Arumbakkam, Chennai – 600106
Date of Birth/Age :	11.05.1960
Experience :	6 Years
Date of Appointment :	15.07.1991

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Mr. V. Sekar	13900
Mr. N. Mohan	11250
Mrs. S. Suganthi	7500
Mrs. M. Padma	3700
Ms. Vidya	2750
Mr. T. N. Ramaswamy	650
Mrs. Nyanammal	600
Mrs. Bhagyalakshmi	450
Mrs. Indira	300
Mrs. Tamilselvi	450
Mrs. Shanthi	550
Ms. Jamuna	200
Mr. N. S. Venkateswaran	300
T. S. Mahadevan	200
Mrs. Meenakshi	450
V. Sekar (HUF)	4750
Mr. T R Jeyachandran	1750
Mr. S. Surthi	1850
Mr. S. Saikrishna	1750
N. Mohan (HUF)	3200
Mr. Vinaymohan	2550
Total	59100

BUSINESS DETAILS

Line of Business :

Manufacturers of Formpoly Nylon, Formpoly Polypropylene Compoundry, Formpoly PPO, Formpoly ABS, Formpoly SAN and Formpoly Bunds and alloys.

Products :

ITC Code No	Product Description
390810.00	Polyamide
390210.00	Polypropylene
390330.00	Acrylonitrile Butadiene Styrene (ABS)

Imports from :

Poly oxide and polymer additives from Germany, Korea, Italy, US and Switzerland

Terms :

Selling :

L/C, Credit [90days] or Cash terms

Purchasing :

L/C, Credit [60days] or Credit terms

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Polymers	MT/month	3000	1448 (Including job works)

GENERAL INFORMATION

Customers :	Wholesalers, End Users and OEM’s
No. of Employees :	55
Bankers :	State Bank of India Siruthozhil Branch, Nungambakkam, Chennai – 600 034, Tamilnadu Cash Credit : Rs. 52.900 Millions The Tamilnadu Industrial Investment Corporation Limited Thiruvallur Branch, 86 C & D Ii Main Road, Ambatur Industrial Estate, Chennai – 600058

Auditors :	M Kuppuswamy PSG Associates Chartered Accountants 4-H, Continental Plaza, # 256 (Old # 705) Anna Salan, Chennai – 600 006, Tamilnadu
Tel No.:	91-44-28522168 / 28524268
Fax No.:	91-44-42149969
Email :	psga@eth.net
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

As on 31.03.2006

Authorised Capital :

No. of Shares	Type	Value	Amount
75,000	Equity Shares	Rs. 100/- each	Rs. 7.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
75,000	Equity Shares	Rs. 100/- each	Rs. 7.500 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2005	31.03.2004	31.03.2003
SHAREHOLDERS FUNDS
1] Share Capital		5.000	4.000	2.000
2] Share Application Money		1.000	1.000	1.350
3] Reserves & Surplus		6.598	5.496	3.443
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		12.598	10.496	6.793
LOAN FUNDS
1] Secured Loans		43.161	32.844	26.058
2] Unsecured Loans		0.565	0.585	0.565
TOTAL BORROWING		43.726	33.429	26.623
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		56.324	43.925	33.416
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17.277	12.220	12.248
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.001
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	23.574	17.693	10.741
	Sundry Debtors	22.742	19.358	0.806
	Cash & Bank Balances	1.104	1.574	12.774
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.553	4.038	1.415
Total Current Assets		50.973	42.663	25.736
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	8.926	8.820	4.037
	Provisions	3.000	2.138	0.532
Total Current Liabilities		11.926	10.958	4.569
Net Current Assets		39.047	31.705	21.167
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		56.324	43.925	33.416

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2005	31.03.2004	31.03.2003
Sales Turnover [including other income]	161.093	138.408	100.638
Profit/(Loss) Before Tax	2.244	2.750	0.762
Provision for Taxation	0.650	0.717	0.342
Profit/(Loss) After Tax	1.594	2.033	0.420
Import Value	USD 94123 EUR 29439	USD 75253 EUR 184800	NA
Export Value	NIL	NIL	US$5100
Total Expenditure	125.989	135.658	98.115

KEY RATIOS

PARTICULARS		31.03.2005	31.03.2004	31.03.2003
PAT / Total Income	(%)	0.99	1.47	0.42
Net Profit Margin (PBT/Sales)	(%)	1.39	1.99	0.76
Return on Total Assets (PBT/Total Assets}	(%)	2.34	5.01	2.01
Return on Investment (ROI) (PBT/Networth)		0.18	0.26	0.11
Debt Equity Ratio (Total Liability/Networth)		4.42	4.23	4.59
Current Ratio (Current Asset/Current Liability)		4.27	3.89	5.63

LOCAL AGENCY FURTHER INFORMATION

FIXED ASSETS

Ø Land

Ø Building

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Vehicles

Ø Computer

OPERATIONS

During the financial year 2004-2005 the company recorded a growth of 16% compared to the previous year. However the significant increase in the prices of polymers which is the major raw materials, affected the profitability significantly. The continued efforts of cost management, waste reduction and energy conservation, offset the increase to some extent. The company has also carried out number of modifications to improve the operating efficiency of the plant and operations.

The company continues to attain the set targets in production, sales and profit in spite of steep raise in input cost due to petroleum price raise. An additional production facility was installed in the year and was put in to use during the year. With this and with debottlenecking of the existing plants the installed capacity was enhanced to 3000 MT per annum.

In continuation of last year market expansion plan, company carried out major approved process under “Application Development Program”. An aggressive and concentrated process approach was followed to get faster approvals on new grade development. Also the company worked on massive “market Development program ” for getting approvals for already available products. Market reaches were reviewed and new strategy ware made to reach on “All India” basis. Many approvals were received and many are in the process, which are expected to title the turn over of the company for better in a short span.

CORPORATE GOVERNANCE

The company believe that good corporate governance is essential to achieve long-term corporate goals and to enhance stakeholder’s value. The company believe in strict compliances in respect f legal, environment and general regulatory framework a good corporate should follow. FPL also believes in transacting business, which is transparent, ethical and accountable. In this pursuit the company is committed to transparency in all its dealings. To provide high quality products and services to its customers.

It’s products range include :-

· Glass Fibre Reinforced

· Mineral Reinforced

· Impact Modified

· Flame Retardant

· Antistatic

· Lubricated

· UV/Heat Stabilised

· Pre Colored

It is in trade terms with :-

· D. R. Polymers, Delhi

Contact - Mr. Dinesh

· Jagruthi Resins and Polymers Limited

Contact – Mr. Arvind Doshi

· Rupal Plstics

Mumbai, Maharashtra

Contact – Mr. Hemanth Shah

As a part of continual improvement plan, the company has introduced a range of modified PPO (Poly Phenylene Oxide) grades.

Ranges :-

· UN Reinforced Standard Grades

· Un Reinforced Flame Retardent Garden

· Glass fibre Reinforced Grades

· Glass Fibre Reinforced Flame Retardent Grades

· PPO/Poly amide alloy (PPO + PA)

· PPO/Poly Propylene Alloy (PPO + PP)

PPO/ Poly amide alloy (PPO+PA)

Offers superior heat resistance stiffness and dimensional stability of PPO with excellent chemical resistance, flow & paint adhesion property of Nylon resin.

PPO/Poly Propylene Alloy (PPO + PP)

This High performance product fills the gap between the basic properties of PP and the stronger Engineering performance characteristics of PPO.

The company offers a wide range of technical compounds in Engineering Plastic resins. All the company’s grades are designed for easy flow during processing permit thin section molding show fast solidification and mould release properties resulting in fast production cycles. All products are in pellet form and offered in standard 25 KGs moisture proof bags. Following are the product range, which are available off shelf generally.

profile

Subject is a professionally managed company established in 1993 with an objective to design and manufacture comprehensive range of thermo plastic compounds and speciality niche compounds in engineering plastics. The company is the first QS 9000 & ISO 9001 certified firm in India for engineering plastic compounds which includes design capabilities.

The company is equipped with the latest state of art machinery with Toshiba Japanese Twin Screw Extruders, fully automated Feeders, Vacuum Vent, Side Feeders Dosing, on line Dehumdified Drying ensuring totally hand free operation from raw material to finished goods. The company is backed by continuous development technology to design and manufacture a wide range of compounded materials. The company has excellent and elaborate systems for monitoring and maintaining quality at every stage.

The company has an ever increasing range of plastic compounds ranging from relatively inexpensive commodity compounds to sophisticated engineering compounds. Custom grades and requirements, treated as a nuisance by some resin manufactures are the challenged on which the company thrives.

FPL enjoys carrying out Co-operative Development Programme. If customer are using plastic compounds now, which are expensive, do not meet the quality standards or not available freely, FPL can help to solve these problems by offering economical job-specific substitutes. Combining a strong technology base with application expertise, FPL can work with customer right from inception to completion, professionally and on time.

FPL offers the end-user industry, the designer and the processor with a wide range of plastic compounds to satisfy every application.

Quality Policy

To make their customer successful, they are committed to

· remain dynamic to fulfil their ever changing requirements,

· offer products always at a competitive price,

· provide quality products in line with their needs and expectation.

They Will Achieve these by

· involving ourselves as a same family,

· striving for excellence in all that they do.

Environmental Policy

As a good corporate citizen, FPL is committed towards protection of environment and conservation of natural resources. In order to achieve these, they are committed to

· continual improvement in environmental performance,

· ensure prevention of pollution,

· comply with applicable legal and other requirements,

· optimise the utilisation of resources in all area of operations,

· reduce generation of waste at source.

They will achieve these by

· improving awareness amoung all their employees & interested parties towards environment,

· striving for excellence in all that they do towards environments

Product Range

FPL offers a wide range of technical compound in engineering plastic resins. All the FPL grades are designed for easy flow during processing, permit thin section molding, show fast solidification and release properties resulting in fast production cycles. All products are in pellet form and offered in standard 25 Kg moisture proof bags. Following are the products range, which are available off the shelf generally.

MANUFACTURERS OF JOB SPECIFIC ENGINEERING PLASTIC COMPOUNDS IN:
POLYMERS	RANGE OFFERED
Polypropylene - Homo & Co Polymer (PP)	Glass Fibre Reinforced.
Polyamide - 6 & 66 (Nylon 6, 66)	Mineral Reinforced
Acrylonitrile Butadiene Styrene (ABS)	Impact Modified
Polyacetal - Homo & Co Polymer (POM)	Flame Retardant
Poly Phenylene Oxide(m-PPO)	Antistatic
Poly Butylene Terephthalate (PBT)	Lubricated
Styrene Acrylonitrile (SAN)	UV Stabilised
Alloys and Blends	Heat Stabilised
Job Specific Grades	Pre Colored

NYLON 6 GRADES

GRADE	DESCRIPTION	CHARACTERISTICS
N6GP28 N6GP28T	General Purpose unfilled General Purpose – Toughened unfilled	Heat stabilized, nucleated for fast moulding cycle with excellent molding. Toughened grades show higher impact strength.
N6GF15 N6GF30 N6GF40	15% Glass Fiber Reinforced 30% Glass Fiber Reinforced 40% Glass Fiber Reinforced	Heat stabilized Chemically coupled Glass Fiber Reinforced Grades with excellent mechanical / thermal properties. Offers reduced shrinkage.
N6GF15 T N6GF30 T N6GF40 T	15% Glass Fiber Reinforced - Toughened 30% Glass Fiber Reinforced - Toughened 40% Glass Fiber Reinforced - Toughened	Heat stabilized Chemically coupled Glass Fiber Reinforced Grades with enhanced impact resistance and excellent mech./ thermal properties.
N6MF15 N6MF30	15% Mineral Reinforced 30% mineral Reinforced	Heat stabilized CC mineral reinforced Offers moderate strength and good surface finish.
N6BF40	40% Mineral / Glass Fiber Reinforced	A combination of Mineral & Glass Fiber for best of both Excellent warpage control
N6WF40	40% Glass Fiber / Mineral Reinforced	A combination of Glass Fiber & Mineral for best of both Excellent warpage control
N6HS28	Heat Stabilized	Good Heat stability with excellent moldablity
N6MS28	Lubricated MoS2 filled	Dry lubrication for anti-friction & reduced wear
N6AS28	Anti-static grade	Excellent anti-static surface property
N6GF30FR	Glass Fiber Reinforced Flame Retardant	Meets UL94 V0 rating with good combination of good mechanical / thermal properties.

POLYACETAL CO POLYMER GRADES

GRADE	DESCRIPTION	CHARACTERISTICS
POMGP270	Unfilled 27 MFI Colored	Heat stabilized, nucleated for fast moulding cycle
POMGP90	Unfilled 9 MFI Colored	With good range of shades

NYLON 66 GRADES

GRADE	DESCRIPTION	CHARACTERISTICS
N66GP30	General Purpose Unfilled	Heat stabilized, nucleated for fast moulding cycle
N66GF15 N66GF20 N66GF33 N66GF43	15% Glass Fiber Reinforced 20% Glass Fiber Reinforced 33% Glass Fiber Reinforced 43% Glass Fiber Reinforced	Heat stabilized Chemically coupled Glass Fiber Reinforced with excellent mechanical / thermal properties & reduced shrinkage. Hydrolysis resistance grades also available.
N66HS30	Heat Stabilized – anti leach	Heat stabilized for anti aging and property retention
N66MS30	Lubricated MoS2 filled Nylon 66	Dry lubrication for anti-friction & reduced wear
N66GF33FR	Glass Fiber Reinforced Flame Retardant	Meets UL94 Vo rating with good combination of excellent mechanical/thermal properties.

ABS (ACRONITRILE – BUTADIENE – STYRENE) GRADES

GRADE	DESCRIPTION	CHARACTERISTICS
ABSGP30	General Purpose Unfilled	Excellent surface finish and gloss
ABSHR90 ABSHR110	Heat Resistant ABS High Heat Resistant ABS	Heat resistant unfilled with good surface finish and glossy surface. Moderate mechanical properties.
ABSGF15 ABSGF30	15% Glass Fibre Reinforced 30% Glass Fibre Reinforced	Heat stabilized CC-GF Reinfd. With moderate mech. / thermal properties & reduced shrinkage
ABSGF15WRM	15% GF Reinforced wear resistant	Wear protected with GF reinforcement

SAN (STYRENE-ACRONITRILE) GRADES

GRADE	DESCRIPTION	CHARACTERISTICS
SANGF20 SANGF20(IM)	20% Glass Fibre Reinforced 20% Glass Fibre Impact modified	Heat stabilized CC-GF Reinforced with moderate mech. Properties. IM is impact modified grade with higher impact strength

In addition to above FPL have many other formulations for many end use applications. FPL also has many Job specific grades and alloys and blends for many specific requirements. May be some of them may suit the requirements also. Call on us to know more about us and about their Product range. For the convenience they have Sales Executives in the area also.

FPL offers the end-user industry, the designer and the processor with a wide range of Plastic compounds to satisfy every applications.

FPL’s full range of service includes development assistance, customer formulations, product and application guidance.

FPL enjoys carrying out Cooperative Development program. If customer are using plastic compounds now, which are expensive, do not meet the quality standards or not available freely, FPL can help to solve these problems by offering economical Job-specific substitutes. Combining a strong technology base with application expertise, FPL can work with customer right from inception to completion, professionally and on time.

Name of the company

FORMULATED POLYMERS LIMITED

Presented By

State Bank of India

Siruthozhil Branch, Nungambakkam,

Chennai – 600 034, Tamilnadu

1) Date and description of instrument creating the change

Dated 07.12.2000

General agreement for the grant of Small industrial Advances and Hypothecation of Movables, Book Debts and other Assets

Agreement for the Grant of Small Industrial Advances (Working Capital Finance) Re: Hypothecation of Goods, book Debts, Movables and other assets.

Agreement for the Grant of Small Industrial advances (Working Capital Finance) Re: Letter of Credit, guarantees and Indemnities.

All dated 07.12.2000 and relate to one and the same charge.

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 14.000 Millions

Natural of facility	Rs in Millions
Cash credit (Hypothecation of stocks and Book Debts)	9.000
Letter of Credit	5.000
Total	14.000

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of Stock of Raw Materials, Semi finished and finished goods and receivables

Merchandise covered under letter of credit.

General charge over the entire movable and immovable assets of the company.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest @ 3 % over the SBAR with a minimm of 15 % p.a. Margin : Raw materials, Semi-Finished and Finished goods, Bills, Letter of Credit : 25 %

5) Name and Address and description of the person entitled to the charge.

State Bank of India

Siruthozhil Branch, Nungambakkam,

Chennai – 600 034, Tamilnadu

6) Date and brief description of instrument modifying the charge

Dated 25.11.2005

New Agreement Executed.

Loan Cum hypothecation agreement

Extension of Equitable mortgage by way of Deposit of Title Deeds.

Letter of Confirmation for Extension of Mortgage by deposit of title Deeds

Memorandum of Recording Extension of Mortgage by deposit of title Deeds

Memorandum of Recording creation of Mortgage by deposit of title Deeds

All dated 25.11.2005 and relates to one and the same charge.

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The credit facility extended to the company has now been enhanced from Rs. 36.000 Millions to Rs. 52.900 Millions comprising of:

Nature of facility	Existing	Enhanced
	(Rs in millions)
Cash Credit	27.700	36.000
Stand by line of credit	4.300	6.900
DDP (Chq) Sub Limit under CC (Hyp)	(1.000)	(1.000)
Letter of Credit	4.000	10.000
Total	36.000	52.900

Securities :

Hypothecation of Entire Current assets, Raw Materials, Semi finished goods, Finished goods, Stocks in Process, Finished Goods, receivables, Cheques / drafts Purchased during the course of collection, stores, spares, merchandise covered under LC and extension of Charges on the entire current assets as stipulated for CC Limit.

Extension of Equitable Mortgage of Company’s Immovable Properties viz. Land and Building Measuring 0.197 Acres with backup area of 192 sq. mts. S. No. 111, Shed No. 58 at Sidco Industrial Estate, Thirumazhisai (more fully described in the letter evidencing deposit of title deeds).

Creation of Equitable Mortgage of Company’s Immovable Properties viz. Shed No. 60 at Indusrial Estate Land extent of 0.198 acres and Building 2160 sq. ft. at Thrumazhisai (more fully described in the letter evidencing deposit of title deeds).

Earlier of Interest, margin and other terms and condition as per the agreement.

All other terms and conditions remain the same. s

Name of the company

FORMULATED POLYMERS LIMITED

Presented By

State Bank of India

Siruthozhil Branch, Nungambakkam,

Chennai – 600 034, Tamilnadu

1) Date and description of instrument creating the change

Dated 07.12.2000

General agreement for the grant of Small industrial Advances and Hypothecation of Movables, Book Debts and other Assets

Agreement for the Grant of Small Industrial Advances (Working Capital Finance) Re: Hypothecation of Goods, book Debts, Movables and other assets.

Agreement for the Grant of Small Industrial advances (Working Capital Finance) Re: Letter of Credit, guarantees and Indemnities.

All dated 07.12.2000 and relate to one and the same charge.

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 14.000 Millions

Natural of facility	Rs in Millions
Cash credit (Hypothecation of stocks and Book Debts)	9.000
Letter of Credit	5.000
Total	14.000

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Hypothecation of Stock of Raw Materials, Semi finished and finished goods and receivables

Merchandise covered under letter of credit.

General charge over the entire movable and immovable assets of the company.

4) Gist of the terms and conditions and extent and operation of the charge.

Interest @ 3 % over the SBAR with a minimm of 15 % p.a. Margin : Raw materials, Semi-Finished and Finished goods, Bills, Letter of Credit : 25 %

5) Name and Address and description of the person entitled to the charge.

State Bank of India

Siruthozhil Branch, Nungambakkam,

Chennai – 600 034, Tamilnadu

6) Date and brief description of instrument modifying the charge

Dated 23.08.2004

Memorandum of Entry

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Extension of 2^nd charge on the company’s following Immovable properties in favour of State Bank of India, Siruthozhil Branch, Chennai for the Overall Working capital facilities of Rs. 36.000 millions together with all structures, plant and machinery standing thereon.

SHED NO.: 59

All that piece and parcel of the Sidco Shed bearing Shed No.: 59, in the Survey No.: 110 and 111 part of Chembarambakkam Village, Siperumbudur Taluk, Changai MGR District measuring 16 M X 12 M in a land extent of 0.218 Acres in the Sidco Industrial Estate, Thirumazhisai, Sriperumbudur Taluk, Chennai MGR District and bounded on North by Shed No. 57 South by : Shed No.: 61, Estate by: 12 M Road, West by : Paddy Field, the above property is situated within the sub registration district of Poonamallee and registration District of Changleput.

SHED NO.: 57

All that piece and parcel of Land and Building situate at Shed No. 57 Sidco Industrial Estate, Thirumazhisai, in S. No. 110 (Part) Chambarambakkam Village, Sriperubudur Taluk, Chennai MGR District, comprised in Survey No. 110 Part admeasuring 0.392 Acres of Land with Shed area of 2705 sq. ft. bounded on the North by Shed No. 32 South by Sidco Shed No. 59 Part of 12 m Road, East by Shed No. 56, West by Paddy Field and situate with in the Registration District of Chengalpet and Sub registration District of Poonamallee.

Building :

SHED NO.: 59

1. L.B.W.A.C.C. Roof over Structural Steel Trusses 12 M X 15 M = 180 sq.m.
2. L.B.W.A.C.C. Roof

Side 5.3 X 12.0 m = 6.36 sq.m.

Side 5.3 X 4.2 M = 22.3 Sq.m.

Rear 3.0 X 7.0 M = 21.0 sq.m

3. F. S. – R. C. C.

G.F.5.2 X 17.5 m= 91 sq.m.

F.F. = 91 Sq.m.

4. L.B.W. – R.C.C. Stopped roof with OIIT Toilet
5. Under ground Sump L.S.
6. Compound Wall in front and rear – 50 M

SHED NO.: 59

ACC Roof for Factory Shed 2120 SQ.FT.

SHED NO.: 57

L.B.W. – A.C.C. Roof over structure Steel Trusses 12 m X 15 M = 180 sq. m.

L.B.W. – A.C.C. Lean to roof 640 sq. ft. of 59.55 sq. m.

New Shed For security 175 sq. ft. of 16 sq. m. .

L.B.W.R.C.C. Stopped Roof with OHT – LS Toilet 15000 x 0.90

Compound wall and Steel Gates

New construction –pre-cost cement concrete Blocks 90m.

Well and Pump –L.S.

Shed No 57

ACC Roof for factory Shed 1011 Sq. Ft. 2079 Sq. ft. 198 Sq. ft. and all other miscellaneous construction etc.

All other terms and conditions remain the same.

Name of the company

FORMULATED POLYMERS LIMITED

Presented By

Thiru P. Subramanian

Branch Manager, TIIC Limited

Thiruvallur Branch, Ambattur

Chennai – 600058

1) Date and description of instrument creating the change

Mortgage by deposit title deeds by the company on 16.03.2005 in favour of the TIIC for its V term Loan of Rs. 4.000 Millions with the TIIC Limited, No Instrument executed.

Unattested Hypothecation deed dated for Rs. 4. 000 millions as V Term Loan (both 1 & 2 relates to the same charge)

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 4.000 Millions as V Term Loan

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

All the land and premises present and future situated at No. 57 & 59, Sidco Industrial Estate, Thiruvallur, and Chennai – 602107. All the singular the plant and machinery erected on the above lands.

Floating charge on all the remaining movable assets of the company including book dents subject to periodic charge of the company bankers for working finance requirement erected at No 57 & 59 Sidco Industrial Estate, Thiruvallur, Chennai – 602107

4) Gist of the terms and conditions and extent and operation of the charge.

Under the equitable mortgage and hypothecation for Rs. 4.000 millions. the same is repayable in 24 Quarterly instalments. Of principal will begin immediately on the first day of succeeding month after the expiry of one year for TL form the date of first disbursements as will be application besides the quarterly interest and subsequent instalment of principal every quarter year thereafter.

Rate of interest will be 11.50% p.a. under the SIDB / IDBI reference which is exclusive of interest tare

In case of default in its repayment an additional interest of 2.5 % p.a. for the defaulted amount for the defaulted period will apply.

No credit interest will be paid for the amount of principal or interest paid earlier except in these cases where the loans have been fully repaid or the full payment of instalment of principal or interest is made more then sixty days before the due date.

The interest is payable in quarterly rests on 28^th, 29^th February, 31^st May, 31^st August, 30^th November as will be applicable taking into consideration the date of first disbursement.

5) Name and Address and description of the person entitled to the charge.

The Tamilnadu Industrial Investment Corporation Limited

Thiruvallur Branch, 86 C & D Ii Main Road,

Ambatur Industrial Estate, Chennai – 600058

6) Date and brief description of instrument modifying the charge

Not Available

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Not Available

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 records 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. 45.01
UK Pound	1	Rs. 84.91
Euro	1	Rs. 57.48

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	6
--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	YES
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	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