MIRA INFORM REPORT

Report Date :

19.07.2007

IDENTIFICATION DETAILS

Name :	CRAY VALLEY RESINS INDIA PRIVATE LIMITED
Registered Office :	Plot No. D- 43 (1), Trans Thane Creek, MIDC Industrial Area, Navi Mumbai –400705, Maharashtra
Country :	India
Financials (as on) :	31.12.2005
Date of Incorporation :	31.01.1997
Com. Reg. No.:	11-105589
CIN No.: [Company Identification No.]	U99999MH1997PTC105589
TAN No.: [Tax Deduction & Collection Account No.]	MUMC06693B
Legal Form :	A private limited liability company. It is a subsidiary of Total Fina Elf S. A., France (part of the Atofina group).
Line of Business :	Manufacture and Sale of a Wide Range of Synthetic Resins.

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small

Maximum Credit Limit :	USD 340000
Status :	Moderate
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	The company has substantial accumulated losses. Foreign partners are infusing funds for the working capital. 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 with some caution, initially.

LOCATIONS

Registered Office/ Factory:	Plot No. D- 43 (1), Trans Thane Creek, MIDC Industrial Area, Navi Mumbai –400705, Maharashtra, India.
Tel. No.:	91-22-55907103/27907101/08/56137108
Fax No.:	91-22-55907102/27610653/27687998
Email:	crayvalley@crayvalley.com
Website:	http://www.crayvalley.com
Area :	Leased

DIRECTORS

Name :	Mr. Nishith Parikh
Designation :	Managing Director and Chief Executive Officer
Age:	44 years
Qualification:	B. S. Chem. , B. S. Chem., Engineering
Experience:	17 years
Date of Joining:	1^st February, 2001
Previous Employment:	Noble Synthetics Limited (Chief Executive Officer/3 years)
Name :	Mr. Thierry Kuter
Designation :	Director
Name :	Mr. S. Venkatraman
Designation :	Director
Name :	Mr. T. R. Raghraman
Designation :	Managing Director
Address:	46/1, 4^th Main Road, Extn, Kottupuram, Chennai – 600 086.
Date of Birth/Age :	09.05.1956
Date of Appointment :	29.11.2002
Name :	Mr. Neelakantan Subramanian
Designation :	Director
Address:	8, Cathedral Road, Chennai – 600 086, India.
Date of Birth/Age :	04.02.1948
Date of Appointment :	15.09.2000
Name :	Mr. V. Ganeshan
Designation :	Director
Address:	No. 1264, 32^nd ‘G’ Cross, 28^th Main, 4^th T Block, Jayanagar, Bangalore – 560 041, India.
Date of Birth/Age :	29.09.1957
Date of Appointment :	24.02.2006
Name :	Mr. Renaud Lestage
Designation :	Director
Address:	LA Defence 2-12, Place De L’tris, F-92062 Paris LA Defense, Cedex.
Date of Birth/Age :	04.02.1946
Date of Appointment :	18.03.2005
Name :	Mr. Eddie Lee
Designation :	Director
Address:	LA Defence 2-12, Place De L’tris, F-92062 Paris LA Defense, Cedex.
Date of Birth/Age :	28.05.1954
Date of Appointment :	18.03.2005
Name :	Mr. Mambakkam Nagarajan Ganeshan
Designation :	Director
Address:	No. 1264, 32^nd ‘G’ Cross, 28^th Main, 4^th T Block, Jayanagar, Bangalore – 560 041, India.
Date of Birth/Age :	22.09.1957
Date of Appointment :	12.06.2006

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares
Total Tour Total, 24 Cours Michelet, Cedex-47, 92069 Paris Lad Defence, France	19939829
Total Chimie S.A.	170
Total:	19939999

BUSINESS DETAILS

Line of Business :

Manufacture and Sale of a Wide Range of Synthetic Resins.

Products :

Item Code. No.	Product Description
3906.90	Acrylics
3908.90	Polyamides
3907.50	Alkyds & Hard Resins

PRODUCTION STATUS

Particulars	Unit	Installed Capacity		Actual Production
		31.12.2005	31.03.2004	31.12.2005	31.03.2004
Synthetic Resins	MT	2385	1969	3180	2026

GENERAL INFORMATION

No. of Employees :	120
Bankers:	BNP Paribas 62, Homji Street, Fort, Mumbai – 400 001, India.
Banking Relations :	Satisfactory
Auditors :	Bharat S. Raut & Company Chartered Accountants' KPMG House, Kamala Mills Compound, 448, Senapati Bapat Marg, Lower Parel, Mumbai- 400 013, Maharashtra
Parent Company	Total Fina Elf S. A., France (Part of the Atofina Group)

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs. 10.00 each	Rs. 300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19939999	Equity Shares	Rs. 10.00 each	Rs. 199.400 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.12.2005	31.12.2004	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital	199.400	199.400	59.400
2] Reserves & Surplus	0.000	0.000	0.000
3] Profit & Loss account	(112.294)	(114.830)	(113.636)
NETWORTH	87.106	84.570	(54.236)
LOAN FUNDS
1] Secured Loans	135.000	180.066	145.000
2] Unsecured Loans	50.000	49.999	189.999
TOTAL BORROWING	185.000	230.065	334.999
TOTAL	272.106	314.635	280.763
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]	137.186	139.574	159.870
Capital work-in-progress	0.317	3.441	0.000
INVESTMENTS	7.229	7.229	7.229
CURRENT ASSETS, LOANS & ADVANCES
Inventories	80.050	122.416	76.005
Sundry Debtors	154.366	132.332	99.186
Cash & Bank Balances	14.744	13.211	14.586
Loans & Advances	24.386	18.130	10.114
Total Current Assets	273.546	286.089	199.891
Less: CURRENT LIABILITIES & PROVISION
Current Liabilities	143.673	120.238	85.511
Provisions	2.499	1.674	1.572
Total Current Liabilities	146.172	121.912	87.083
Net Current Assets	127.374	164.177	112.808
MISCELLANEOUS EXPENSES	0.000	0.214	0.856
TOTAL	272.106	314.635	280.763

PROFIT & LOSS ACCOUNT

PARTICULARS	31.12.2005	31.12.2004	31.03.2004
Sales Turnover [including other income]	686.327	436.335	448.057
Profit/ (Loss) Before Tax	2.851	7.206	(27.149)
Provision for Taxation	0.000	0.000	0.000
Profit/ (Loss) After Tax	2.851	7.206	(27.149)
Export Value	NA	26.899	33.313
Import Value	NA	114.778	93.599
Total Expenditure	683.476	429.128	475.207

KEY RATIOS

PARTICULARS		31.12.2005	31.12.2004	31.03.2004
PAT / Total Income	(%)	0.42	1.65	(6.06)
Net Profit Margin (PBT/Sales)	(%)	0.42	1.65	(6.06)
Return on Total Assets (PBT/Total Assets}	(%)	0.68	1.65	(7.39)
Return on Investment (ROI) (PBT/Networth)		0.03	0.08	(0.50)
Debt Equity Ratio (Total Liability/Networth)		3.80	5.16	(6.78)
Current Ratio (Current Asset/Current Liability)		1.87	2.34	2.29

LOCAL AGENCY FURTHER INFORMATION

History

The company was incorporated on 31^st January, 1997 at Mumbai in Maharashtra having Company Registration Number 105589. Subsequently, it was converted into private limited liability company w. e. f. October, 2001

The company is in trade terms with:

v Pretti Industries

v United Barrels

v Nobel Synthetics Private Limited

v Unique Enterprises

v Quality Industries

v Varad Industries

v Boisur Chemicals

v Kahan Packaging

v Radiz Microsystems

v Rainbow Industries

v S. K. Engineering

v Radix Sensors

v Veekay Chemicals

v Vikram Industries

FINANCIAL PERFORMANCE

During the period under review, sales at Rs. 686.33 million showed an increased of 18% over the sales of Rs. 581.77 million (prorated to 12 months) achieved in the previous comparable period of 12 months. The company was able to increase its exports by 31% (on comparable 12 month basis).

Despite the increase of trade receivables in line with increased sales, the company was able to reduce the amount of doubtful debt provisions year before last in accordance with the group policy. This was possible as a result of improved receivables control.

The period witnessed considerable volatility. The prices of inputs and demand and supply of chemicals in the international market along with increasing trend of prices of crude oil contributed to volatility. Strengthening of the Rupee against dollar, while it had positive benefits in terms of prices of import, it had a negative effect in terms of realization for exports. The markets could not absorb all the increase in the costs resulting in margins coming under pressure. There was approximately overall reduction in margin by 3% that mainly contributed in reduction in profits by Rs. 4.68 Millions.

In view of the accumulated losses amounting to 112.29 Millions, the director are unable to recommend payment of any dividends.

Finance:

At the balance sheet date (31.12.2005) working capital demand loans stood at 135 Million as against 180 Million as on 31.12.2004, the decrease of 45 Million was due to decrease in Trade Working Capital by 39 Million inspite of increased sales.

Note in respect of Auditors Report:

The company has shown significant improvement in performance for the year ending on 31.12.2005. The sales have improved to Rs. 986.300 Millions as against Rs. 581.800 Millions for the 12 months period ended 31.12.2004. The operating profit for the year ending 31.12.2005 was Rs. 27.000 Millions as against budgeted operating profit of Rs. 28.000 Millions. Further, Total S.A, the principal shareholders has agreed in principle to infuse fresh equity of Rs. 50.000 Millions during the current year and have also agreed tin principle to convert the outstanding loan amount of Rs. 50.000 Millions in to equity during the current year.

The directors are confident that the performance of the company and the fresh infusion of equity from Total S.A. would result in significant improvement in the net worth of the company during the year 2006 and consequently the accounts of the company qualities to be prepared on “a going concern basis”.

Fixed Assets

v Goodwill

v Leasehold Land

v Building

v Plant and Machinery

v Effluent Treatment Plant

v Electrical Installations

v Computers

v Furniture and Fittings

v Vehicles

v Equipment

Name of the company	CRAY VALLEY RESINS INDIA PRIVATE LIMITED
Presented By	BNP Paribas, 62, Homji Street, Fort, Mumbai – 400 001
1) Date and description of instrument creating the change	Hypothecation Agreement dated 25.10.2002
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 55.000 Millions consisting of funded facilities of Rs. 40.000 Millions and non funded facilities of Rs. 15.000 Millions.
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 all the movables assets such as raw materials, stock in process, finished goods, movable machineries, implements, tools, furniture and fixtures lying at various factories, godowns. Ware houses, retail outlets etc. wherever situated or in transit both present & future, belonging to the company as security by way of First Charge for the due repayment by the company to the bank of all dues under the aforesaid credit facilities.
4) Gist of the terms and conditions and extent and operation of the charge.	Hypothecation of all the book debts, outstanding moneys, receivables, claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing to the company in the course of its business by any person, firm, company or body corporate or by any government department or office or any municipal or local or public or semi government body or authority or any body corporate or undertaking or project whatever in the public sector as security by way of First Charge for the due repayment by the company to the bank of all dues under the aforesaid credit facilities. The company shall pay interest (including penal interest) and or commission for the aforesaid facilities at rates applicable from time to time and as may be informed by the bank. The company shall at all times during the continuance of this security keep and maintain such margin of security in favour of the bank as may from time to time be notified by the bank. Right of entry, inspection, value, insure, take charge of and or to seize, recover, receive, appoint receiver of and or take possession of and sell or dispose of by public auction or private contract all or any part of the hypothecated assets reserved in favour of the bank.
5) Name and Address and description of the person entitled to the charge.	BNP Paribas, French Bank Building, 62, Homji Street, Fort, Mumbai – 400 001.
6) Date and brief description of instrument modifying the charge	Not Applicable
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 Applicable

Name of the company	CRAY VALLEY RESINS INDIA PRIVATE LIMITED
Presented By	Mr. T. R. Raghuraman, Managing Director
1) Date and description of instrument creating the change	04.10.2004 Memorandum of Agreement
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 100.000 Millions.
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	First charge on all the goods including raw materials, work in progress, finished goods, stores & spares and consumables and receivables including book debts, outstanding moneys, bills, invoice documents, contracts, insurance policies, guarantees, securities, investments, royalties, and rights both present & future belonging to or in the possession of or under the control of the borrower or of any third party whether in India or elsewhere throughout the world.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest on monthly rests on out standing amount and shall be charged subject to changes in the banks prime lending rate.
5) Name and Address and description of the person entitled to the charge.	Society General Market Chamber IV, 13^th Floor, P O Box 11635, Nariman Point, Mumbai – 400 021.
6) Date and brief description of instrument modifying the charge	Not Applicable
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 Applicable

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.40.39
UK Pound	1	Rs.82.93
Euro	1	Rs.55.75

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	4
--RESERVES	1~10	-
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		32

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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