MIRA INFORM REPORT

Report Date :

06.11.2007

IDENTIFICATION DETAILS

Name :	LG POLYMERS PRIVATE LIMITED
Registered Office :	R. R. Venkatapuram, Visakhapatnam, - 530029, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	10.12.1996
Com. Reg. No.:	01-25917
CIN No.: [Company Identification No.]	U25203AP1996PTC025917
TAN No.: [Tax Deduction & Collection Account No.]	VPNL00060E
Legal Form :	Private limited liability company
Line of Business :	Manufacturing of polystyrene and expandable polystyrene.

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 6893752
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of LG Group, well known Korean giant. Available information indicates high financial responsibility of the company. Trade relations are fair. Financial position is satisfactory. The company is doing well. It’s payments are correct and as per commitments. The company can be considered good for any normal business dealings.

LOCATIONS

Registered Office / Factory :	R. R. Venkatapuram, Visakhapatna, - 530029, Andhra Pradesh, India
Tel. No.:	91-891-2520455 to 58/2520018
Fax No.:	91-891-2520338/2520528
E-Mail :	info@lgpi.co.in cs01071953@gmail.com
Website :	http://www.lgpi.co.in
Location :	Owned
Administrative office:	2^nd floor, Oberoi Garden Estate, Saki Vihar Road, Sakinaka, Mumbai - 400072, Maharashtra, India
Corporate Office :	Oberoi Garden Estates, 2^nd floor, A Wing, Off Saki Vihar Road, Chandivali, Sakinaka, Andheri (East), Mumbai - 400072, Maharashtra
Branches :	1001 Vikram Tower, 16 Rajendra Place, New Delhi – 110 008 Tel. No. 91-11-25726918/25728002/25747295 Fax No. 91-11-25755730 Mumbai, Bangalore, Kolkatta and Chennai
Location :	Owned
Overseas Branch :	AB-3, Safdarjung Enclave, New Delhi
Tel. No.:	91-11-26714001
Fax No. :	91-11-26713646

DIRECTORS

Name :	Mr. Nam Nyeung Lee
Designation :	Director cum Chairman
Address :	20, Yoido-Dong, Youngdungpo-gu Seoul, Korea – 150721
Date of Birth/Age :	29.05.1953
Date of Appointment :	20.01.2006
Name :	Mr. Do Hyun Nam
Designation :	Director
Address :	20, Yoido-Dong, Youngdungpo-gu Seoul, Korea – 150721
Date of Appointment :	20.01.2006
Name :	Mr. Jong Man Oh
Designation :	Director
Address :	20, Yoido-Dong, Youngdungpo-gu Seoul, Korea – 150721
Date of Appointment :	20.01.2006
Name :	Mr. Byung Gu Kwag
Designation :	Director
Address :	20, Yoido-Dong, Youngdungpo-gu Seoul, Korea – 150721
Date of Appointment :	20.01.2006
Name :	Mr. Yeon Jin Huh
Designation :	Director
Address :	Flat No. 2502, A & B Glen Croft Hiranandani Gardens, Powai, Mumbai 400 078, Maharashtra, India
Date of Birth/Age :	12.05.1959
Date of Appointment :	07.01.2002
Name :	Mr. Kwang Sik Oh
Designation :	Director
Address :	Flat No. 5, Deepanjali Apartments, near circuit house, Visakhapatnam, - 530003, Andhra Pradesh, India
Date of Birth/Age :	18.10.1963
Date of Appointment :	14.01.2003
Name :	Mr. Prasad Babu Mootha
Designation :	Director
Address :	Sai Sadan Apartments, Door No. 47, Dwarka Nagar, Visakhapatnam, - 530016, Andhra Pradesh, India
Date of Birth/Age :	15.06.1949
Date of Appointment :	01.04.2004
Name :	Mr. Sisira Kumar Mishra
Designation :	Director
Address :	Flat No. 2, Block 8, Sri Lakshmi Towers, Visakhapatnam, - 530029, Andhra Pradesh, India
Date of Birth/Age :	06.08.1978
Date of Appointment :	09.09.2005
Name :	Mr. Ok Dong Son
Designation :	Director
Address :	Colg Twin Towers, 16, F20, Yoido Dong, Youndoungpo Gu, Seoul, Korea 150721
Date of Birth/Age :	05.09.1958
Date of Appointment :	27.02.2004
Name :	Mr. Hyung Geun Park
Designation :	Director
Address :	Colg Twin Towers, 16, F20, Yoido Dong, Youndoungpo Gu, Seoul, Korea 150721
Date of Birth/Age :	27.09.1966
Date of Appointment :	27.02.2004
Name :	Mr. Gopala Rao Pitala
Designation :	Director
Address :	11-4-5, 2, Nawroji Road, Maharanipeta, Visakhapatnam, - 530002, Andhra Pradesh, India
Date of Birth/Age :	16.06.1946
Date of Appointment :	01.04.2001

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders	No. of Shares
LG Chemical India Private Limited	126330000
Prasad Babu Mootha	1

BUSINESS DETAILS

Line of Business :	Manufacturing of polystyrene and expandable polystyrene.
Products :	Polysterene, Expandable Polysterene.

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Ethyl alcohol	KL	10000	0
Polystyrene	MT	100000	61567
Expandable	MT	15000	12785

GENERAL INFORMATION

No. of Employees :	300
Bankers :	Ø Bank of America Ø ICICI Bank Ø SCB Ø Chohugh Bank Ø Bank Of India Ø Hongkong Shanghai Banking Corporation Ø HDFC Bank Limited

Banking Relations :	Good
Auditors :
Name :	Mr. V. V. Ram Mohan Chartered Accountants
Address :	10-50-19, Soudamani, Siripuram Junction, Visakhapatnam 530003, Andhra Pradesh
Tel No:	91-891-2755327 / 2517523
Holding Company:	LG chemical India private Limited Address: AB -3, LG house, Safdarjung Enclave, New Delhi – 110 029
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
130000000	Equity Shares	Rs. 10 each	Rs. 1300.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
126330001	Equity Shares	Rs. 10 each	Rs. 1263.300 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		1263.300	1263.300	1263.300
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		460.138	546.100	521.590
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1723.438	1809.400	1784.890
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		0.000	0.000	5.175
TOTAL BORROWING		0.000	0.000	5.175
DEFERRED TAX LIABILITIES		12.438	13.722	0.000
TOTAL		1735.876	1823.122	1790.065
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		670.698	724.985	763.101
Capital work-in-progress		11.409	3.063	1.105
INVESTMENT		4.120	94.215	4.121
DEFERREX TAX ASSETS		29.511	8.920	6.248
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1171.629	988.308	436.213
	Sundry Debtors	696.513	791.345	724.983
	Cash & Bank Balances	336.749	273.289	315.584
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	140.733	86.230	173.035
Total Current Assets		2345.624	2139.172	1649.815
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	1170.788	834.322	565.927
	Provisions	156.196	318.774	78.627
Total Current Liabilities		1326.984	1153.096	644.554
Net Current Assets		1018.640	986.076	1005.261
MISCELLANEOUS EXPENSES		1.498	5.863	10.229
TOTAL		1735.876	1823.122	1790.065

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover	5584.179	6113.063	4914.302
Other Income	61.576	63.205	0.000
Total Income	5645.755	6176.268	4914.302
Profit/(Loss) Before Tax	66.523	503.456	205.420
Provision for Taxation	8.437	190.850	72.131
Profit/(Loss) After Tax	58.086	312.606	133.289
Export Value	373.929	85.930	314.876
Import Value	4430.350	4937.267	3604.530
Total Expenditure	5579.232	5672.812	4708.882

KEY RATIOS

PARTICULARS		31.03.2006	31.03.2005	31.03.2004
PAT / Total Income	(%)	1.02	5.06	2.712
Net Profit Margin (PBT/Sales)	(%)	1.19	8.23	7.147
Return on Total Assets (PBT/Total Assets}	(%)	2.19	17.55	8.473
Return on Investment (ROI) (PBT/Networth)		0.03	0.27	0.115
Debt Equity Ratio (Total Liability/Networth)		0.67	0.46	0.364
Current Ratio (Current Asset/Current Liability)		1.76	1.85	2.559

LOCAL AGENCY FURTHER INFORMATION

Form 8

Bankers Charges Report as per Registry

Name of the company	LG POLYMERS PRIVATE LIMITED
Presented By	STANDARD CHARTERED BANK – NEW DELHI
1) Date and description of instrument creating the change	Letter of Hypothecation [stocks] and [Book Debts] dated 30.10.2001 registered on 27.11.2001.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 603.700 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	All stock in trade both present and future consisting of Raw material finished goods, goods in process of manufacturing and other merchandise whatsoever and all present and future book debts, outstanding moneys, receivables, claims and bills etc. shall be hypothecated to the bank by way of first charge on pari passu basis.
4) Gist of the terms and conditions and extent and operation of the charge.	Interest as may be determined by the bank from time to time.
5) Name and Address and description of the person entitled to the charge.	Standard Chartered Bank Sansad Marg, New Delhi.
6) Date and brief description of instrument modifying the charge	No instrument was executed banks letter dated 8.6.2004
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.	There being no change in the overall limit of Rs. 603.000 Millions, but the company has been granted a Buyers Credit Limit of Rs. 300.000 Millions within overall limit of Rs. 600.000 Millions. Other terms and conditions remaining the same.

OTHER INFORMATION:

To carry on in all its braches the business of manufacturer, developing, processing, compounding, refining, buying selling, importing, exporting, dealing, manufacturing, compounding, produce and every way deal in chemical of every kin , chemical material, substances, products and derivatives including without limitation., PVC resins, satiric resins, polyethylene, engineering plastics, naphtha cracking and its derivatives, organic chemicals, specialty chemicals, chemical materials, cosmetics of every kinds and to engage in the separation or reduction and treatment of solids liquids and gases into their constituents.

Turnover
Polystyrene	:- Rs. 3361.345 millions
Exp Polystyrene	:- Rs. 909.884 millions
Styrene	:- Rs. 659.843 millions
ABS	:- Rs. 6.861 millions
SAN	:- Rs. 15.448 millions
Total	:- Rs. 4953.383 millions

AS PER WEBSITE

History

The company was incorporated in 1961 as "Hindustan Polymers" for manufacturing Styrene monomer, Polystyrene and its Co-polymers at Visakhapatnam, India. Merged with Mc Dowell and Co. Ltd. of UB Group in 1978.

LG Chemical considered India as an important market and in it's aggressive global growth plan identified Hindustan Polymers as a suitable company for entering Indian market through 100% takeover. Taken over by LG Chem (South Korea), Hindustan Polymers was renamed as LG Polymers India Private Limited (LGPI) in July, 1997.

LG Chemical has a very strong presence in Styrenics business in South Korea and have plans to establish an equally strong presence in Indian market for Styrenics by adding ABS and SAN in it's current product range of PS and EPS. Presently LGPI is one of the leading manufacturers of Polystyrene (Brand name: LGSTRENE) and Expandable Polystyrene (Brand name: LGEXPOL) in India. LGPI in true LG tradition is committed to excellence in product quality, service and enriching customers through added value.

PS, HYPOL and EPS Products are Manufactured and Marketed by LGPI

ABS and SAN (from LGChem) and Styrene are Imported and Marketed by LGPI

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.39.32
UK Pound	1	Rs.82.08
Euro	1	Rs.56.96

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		52

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.	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