MIRA INFORM REPORT

Report Date :

15.04.2008

IDENTIFICATION DETAILS

Name :	SPECIALITY POLYMERS PRIVATE LIMITED
Registered Office :	No. 1, Navarang Apartments, 1^ST Floor, Behind S.I.A. High School, Kopar Road, Dombivli (West), Thane - 421202, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	14.10.1988
Com. Reg. No.:	11-49233
CIN No.: [Company Identification No.]	U24295MH1988PTC049233
IEC No.:	0393074803
TAN No.: [Tax Deduction & Collection Account No.]	PNES12825B
PAN No.: [Permanent Account No.]	AACCS3432R
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Synthetic Resin Emulsions, Construction Chemicals and Adhesives and Trading Domestic Market

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 150000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Directors are reported as experienced, respectable and having satisfactory means of their own. Trade relations are fair. Business is active. Payments are reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

INFORMATION PARTED BY

Name :	Ms. Meena S. Sharma
Designation :	Manager
Contact No.:	91-9820601048
Date :	10.04.2008

LOCATIONS

Registered Office :	No. 1, Navarang Apartments, 1^ST Floor, Behind S.I.A. High School, Kopar Road, Dombivli (West), Thane - 421202, Maharashtra
Tel. No.:	91-251-2487548 / 481364
Fax No.:	91-251-2482837 / 2690336
E-Mail :	jainmehta@rediffmail.com response@specialitypolymer.com spdp@vsnl.com
Website :	http://www.specialitypolymer.com/
Area :	500 sq. ft. [Owned]
Administrative Office :	G – 3, Building No. 01, Surya Co-operative Housing Society Limited, Sector – 3, Vashi, Navi Mumbai - 400703
Corporate Office :	B/12, Navrang Apartments, Behind Biah School, Kopar Road, Dombivali [West], Mumbai, Maharashtra, India
Tel. No.:	91-251-2481364 / 5690296 / 2487548
	91-251-2482837 / 2482837
Factory 1 :	Plot No. 03, MIDC, Badlapur, Thane, Maharashtra, India
Tel. No.:	91-251-2690336
Fax No.:	91-251-2690336
Area :	5000 sq. ft. [Leased]
Branches :	89, 2^nd Floor, Empire Building, 134/36, Dr. D. N. Road, Mumbai - 400001
Tel. No.:	91-22-22063533 / 34
Fax No.:	91-22-22063533 / 34
E-Mail :	spdp@vsnl.com
Area :	450 sq. ft. [Rented]

DIRECTORS

Name :	Mr. Sthanusesha Sundram Sharma
Designation :	Director
Address :	R – 18, Ground Floor, Sudarshan Nagar, MIDC, Dombivli [East], Thane – 421201, Maharashtra, India
Date of Birth/Age :	14.12.1950 [56 Years]
Qualification :	B. Sc. [Hons.] Bombay 1970
Experience :	35 Years
Date of Appointment :	14.10.1988
Functional Responsibility in The Group :	Handling production and purchase department at the company
Experience :	Gained experience in manufacturing and testing various chemical instruments. Gained experience in developing and manufacturing various Polymers such as Poly Vinyl Acetate Bead, Poly Vinyl Alcohol, Poly Vinly Formal, Poly Vinly Butral, Resins, Phenal Formaldehyde, Crysol Formaldehyde, Melamine Formaldehyde, Alkyd, Polyesters, Gyptals and various Wire Enamel Coatings. Gained experience in manufacturing Synthetic Resin Emulsions of various grades – Poly Vinly Acetate Homopolymer Emulsions, Vinyl Acrylic Emulsions, Acrylic Co-polymer Emulsions and styrene Acrylic Co-polymer Emulsions. As an Enterprenuer, in 1987 established own manufacturing unit carrying out manufacturing activity at Badlapur. As such gained experience in manufacturing, developing tailor – made products time to time for special end us. During this period acquired rich valuable experience in running manufacturing unit successfully, gained knowledge of various activities, necessary exposure to formalities related to Export-Import handling sales- tax, Excise, Income Tax assessing capital goods and working capital needs of the company and day to day banking activity needs.
Name :	Mr. Padmanabha D. Sharma
Designation :	Director
Address :	R – 18, Second Floor, Sudarshan Nagar, MIDC, Dombivli [East], Thane – 421201, Maharashtra, India
Date of Birth/Age :	14.01.1960 [46 Years]
Qualification :	B. Sc.
Experience :	25 Years
Date of Appointment :	14.10.1988
Functional Responsibility in The Group :	Handling Sales, marketing, administration, finance and accounts department at the company
Experience :	Worked as a Marketing Executive with Aristo Chemicals Private Limited marketing Industrial and Consumer products based on Synthetic Resin Emulsions and based Adhesive in Mumbai and other parts of India Since 1986 associated with Speciality Polymers Private Limited in the capacity of Director handling marketing consumer and Industrial Products. Aggressive Entrepreneur efforts got a break in export market in 1996. Till date visited dozen counties and acquired a skill to promote the products in international market. Acquired valuable knowledge in dealing with high official in industries, banks and government department. Acquired necessary managerial and administrative skill / knowledge of projecting sales of the company on monthly, quarterly and yearly basis along with necessary planning of funds, raw materials requirements. Well conversant with day today bank activities and making proper arrangements of funds for smooth running of he manufacturing activity.

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2007

Names of Shareholders	No. of Shares
Mr. Sthanusesha S. Sharma	9281
Mr. Padmanabha D. Sharma	15698
Total	24979

AS ON 30.09.2007

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Synthetic Resin Emulsions, Construction Chemicals and Adhesives and Trading Domestic Market

Products :

ITC Code No.	Product Description
62	Acrylic Copolymer Emulsion
62	Synthetic Resin Emulsion
62	Adhesive

Exports :

Products :

Chemical

Countries :

UAE, USA

Imports :

Products :

Chemical

Countries :

Taiwan, Korea and Singapore

Terms :

Selling :

Credit [90-120 days]

Purchasing :

L/C, Credit [30 days]

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Chemical	MT	1800	1500
Synthetic Resin, Emulsions, Adhesives	MT	1200	--

Particulars	Unit	Actual Production
		2007	2008	2009 [Projected]	2010 [Projected]
Styrene Based Emulsion	MT	40.95	56.70	58.28	59.85
Pure Acrylic Emulsion	MT	245.70	340.20	349.65	359.10
PVA Emulsions	MT	409.50	567.00	582.75	598.50
Sticker Adhesives	MT	32.76	45.36	46.62	47.88
BOPP Tape Adhesives	MT	16.38	22.68	23.31	23.94
Polysol	MT	32.76	45.36	46.62	47.88
Textile Binders	MT	16.38	22.68	23.31	23.94
Rubber Solution	MT	8.19	11.34	11.66	11.97
Lamination Adhesive	MT	16.38	22.68	23.31	23.94
Total	MT	819.00	1134.00	1165.50	1197.00
Capacity Utilisation
Capacity Utilisation		65.00 %	90.00 %	92.50 %	95.00 %

GENERAL INFORMATION

Suppliers :

Vinyl Acetate Monomer

- Celanese Pet Limited – Singapore

- Dairren Chemicals – Taiwan

- Vinyl Chemicals [India] Limited – Mahad

- Jubilant Organosys Limited – Gajrula [UP]

Ethyl Hexyl Acrylaate

- Pacific Chemicals – Mumbai

- IPCL – Baroda

- Venki Chem – Mumbai

A-5/201, Yogi Sham, Yogi Nagar, Eksar Road, Borivali [West], Mumbai – 400009

Tel No.: 91-22-65093814 / 15

Contact Person : Mr. Paresh / Ms. Prafulla

- Celanece PTE – Singapore

Poly Vinly Alcohol

- Pacific Chemicals – Mumbai

- Celanece PTE – Singapore

111 Saomerset Road, 02/03, Singapore Powre Building, Singapore - 238164

- Chang Chun Petro Chemical Company Limited – Taiwan

No. 301-Songkiang Road, 7^th Floor, Taipei 10477, Taiwan ROC

Plasticizers

- PCL Oil and Solvents Limited – Daman

- Nayakem Organics Private Limited – Tarapur

242, A to Z Industrial Premises Co-operative Society Limited

Ganpatrao Kadam Marg, Lower Parel [West], Mumbai – 400013

Tel No.: 91-22-24936008 / 24225392

Contact Person : Mr. Gurudatt / Mr. Krishanan

Emulsifiers

- Chika Private Limited – Mumbai

- Spectra Specialities

A-12, Lunawat Complex, Kothrud, Pune – 411038

Tel No. : 9520-25447419 / 25422337

Contact Person : Dr. Dabke / Mr. Joshi

Butyl Acrylate

- Releif Chem – Mumbai

Styrene

- C. J. Shah and Company – Mumbai

- Mitsuya Boike – Japan

Catalyst

- Calibre Chemicals Private Limited, Mumbai

Mody Enterprises

32, Dariyasthan Street, 17, Ambe Ashish Building, Vadgadi, Mumbai – 400003

Tel No.: 91-22-23430501 / 502

Contact Person : Mr. Mody / Mr. Vaibhav

D. R. Karkariya and Company

12, Calicat Street, Beaumen Building, Ballard Estate, Mumbai – 400038

Tel No.: 91-22-22614389 / 22610743

Contact Person : Mr. Shirin / Mr. Dilipbhai

Paxchem Limited

W-156, T. T. C. Industrial Area, Pawane, Thane – Belapur Road, Navi Mumbai – 400613

Tel No. : 65802400

Contact Person : Mr. Anil Sharma

Classic Solvants Private Limited

Office No. 601, 6^th Floor, Western Express Highway, Near Sai Services, Mumbai – 400059

Tel No.: 91-22-26844646

Contact Person : Dhiren Bhuta

Customers :

Wholesalers and End Users

Export Customers

• Fosam Company Limited, Jeddah
• AL Gurg Fosroc LLC, Dubai
• Fayfa Chemicals Factory [L.L.C.], Dubai
• Sparytek Coating Manufacturing Company, L. L. C. , Dubai
• Sons Of Reaidy, London
• Nova Tapes and Stationery Ind LLC, Saudi
• Fosroc Jordon, Jordon
• Libanroc SAL, Lebanon
• Chemical Industries [Colombo] Limited, Sri Lanka
• Fosroc Hong Kong, Egypt
• Fosroc Pakistan, Pakistan
• Gulf Glue Industries Company LLC, Dubai
• Global Specialty Chemicals Limited, Sharajah
• STR International LLC, Dubai
• Al Nasseriah International Fz LLC, Dubai

Local Customers

• WIMCO Limited, Ambernath
• WIMCO Limited, Barelly
• Coating and Chemicals, Ghatkoper
• Bilal Match Works, Sivakasi
• Vasan Match Industry, Sivakasi
• Nisha Chemicals
• SKS Labchem, Mumbai
• J.V. and Sons, Mumbai
• S. R. International, Mumbai
• Western India, Mumbai
• Fosroc Chemicals India Limited, Anklishwar, Bangalore
• Monarch Self Adhesives Tape [Private] Limited, Bangalore
• Akshay Polymers, Kurla
• Jai Bharat Corporation, Kurla
• Grindwell Norton Limited, Urab
• Government of India Security Printing Press, Hyderabad
• Artek Surfine Chemicals Limited, Vasai
• Chokasy Chemicals Private Limited, Sion
• Flotech Velvets Private Limited, Silvasa
• Bhuta Enterprises, Mumbai
• J.T.A. Enterprises, Mumbai
• Lamson Sticks Private Limited, Vikhroli
• Mahavir and Mahavir Products, Malad
• Karuna Cables Limited, Hyderabad and Mumbai
• Nimish and Company, Mumbai
• Pallavi Graphics, Hyderabad
• Raj Techno Colour Private Limited, Jalander, Punjab
• R. Stick, Dadar
• Super Furniture, Ulhasnagar
• Simpsons Petro Chemicals Limited, Kurla
• Sadguru Plywoods, Ulhasnagar
• Padmavati Enterprises, Mumbai
• Siddheshwar Textile Mills Private Limited, Solapur
• Talreja Textile Industries, Taloja
• Unique Nonwoven Company, Bangalore
• Vijayraj and Company, Malad

No. of Employees :

26 [In Office : 4; In Factory : 16 and In Branch : 6]

Bankers :

Punjab National Bank, PNB House, Sir P. M. Road, Mumbai – 400001, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2007 [Rs. In Millions]
Punjab National Bank
C/C Overdraft [Secured with Hypothecation of RM/WIP/SEMI Finished and Finished goods and Book Debts upto 90 days]	6.765
Packing Credit Account [Hyp. of Stocks for Export]	5.999
Cash credit Account – Adhov [Secured with Hypothecation of RM/WIP/SEMI Finished and Finished goods and Book Debts upto 90 days]	1.613
Post Shipment Credit [Export Post-Shipment Bills]	6.025
Total	20.402
Unsecured Loan
Mrs. Kalindi Merchant	0.050
Texaid Marketing Company	0.030
Total	0.080

Rs. In Millions

Bank	Nature of Credit Facility	Sanctioned Loan Amount	Outstanding Balance
Punjab National Bank	Cash Credit	8.000	8.000
	Packing Credit	6.000	6.000
	Post Shipment	6.000	4.500
	L/C	20.000	18.000
	B/G	1.500	Nil

Banking Relations :	Satisfactory
Auditors :
Name :	N. C. Shah and Company Chartered Accountants
Address :	603, Cotton Exchange Building, 6^th Floor, 175, Kalbadevi Road, Mumbai – 400002, Maharashtra, India
Associates/Subsidiaries :	DEX-VIN POLYMERS PRIVATE LIMITED Address : 1^st Floor, Ramraksha Kutir , Behind S.I.A. High School, Kopar Road, Dombivli (West), Thane - 421202, Maharashtra Tel No.: 91-251-2481364 Fax No.: 91-251-2482837 Email : spdp@vsnl.com Activity : Manufacturer of Synthetic Resin Emulsions and Adhesives and Trading Domestic Market Bankers : Bank of India Authorised Capital Rs. 5.000 Millions Paid Up Capital : Rs. 4.601 Millions Turnover and Export Incentives as on 31.03.2007 : Rs. 163.701 Millions

CAPITAL STRUCTURE

AS ON 30.09.2007

Authorised Capital :

No. of Shares	Type	Value	Amount
25000	Equity Shares	Rs. 100/- each	Rs. 2.500 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
24979	Equity Shares	Rs. 100/- each	Rs. 2.498 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Share Capital		2.498	2.497	2.498
2] Share Application Money		14.000	13.524	0.000
3] Reserves & Surplus		21.473	19.945	19.174
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		37.971	35.966	21.672
LOAN FUNDS
1] Secured Loans		20.402	19.157	16.617
2] Unsecured Loans		0.080	0.080	0.080
TOTAL BORROWING		20.482	19.237	16.697
DEFERRED TAX LIABILITIES		0.089	0.128	0.222
TOTAL		58.542	55.331	38.591
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.747	0.886	1.794
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.729	34.444	12.648
	Sundry Debtors	97.334	37.399	28.133
	Cash & Bank Balances	2.722	2.835	2.676
	Other Current Assets	4.189	2.398	9.684
	Loans & Advances	5.892	4.684	4.364
Total Current Assets		137.866	81.760	57.505
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	76.981	27.315	19.453
	Provisions	3.090	0.000	1.255
Total Current Liabilities		80.071	27.315	20.708
Net Current Assets		57.795	54.445	36.797
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		58.542	55.331	38.591

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		211.241	153.229	114.632
Other Income		0.074	0.045	0.107
Total Income		211.315	153.274	114.739
Profit/(Loss) Before Tax		2.497	1.438	1.061
Provision for Taxation		0.894	0.593	0.331
Profit/(Loss) After Tax		1.603	0.845	0.730
Earnings in Foreign Currency :		52.006	34.414	30.419
Imports :
	Raw Materials	3.684	Nil	Nil
Expenditures :
	Cost of Sales	197.618	143.143	92.575
	Employees Remuneration	0.826	0.940	1.114
	Other Expenses	4.877	4.306	16.889
	Bank Interest and Charges	5.318	3.270	2.796
	Depreciation	0.180	0.178	0.303
Total Expenditure		208.819	151.837	113.677

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	0.76	0.55	0.64
Net Profit Margin (PBT/Sales)	(%)	1.18	0.94	0.93
Return on Total Assets (PBT/Total Assets}	(%)	1.80	1.74	1.79
Return on Investment (ROI) (PBT/Networth)		0.07	0.04	0.05
Debt Equity Ratio (Total Liability/Networth)		2.65	1.29	1.73
Current Ratio (Current Asset/Current Liability)		1.72	2.99	2.78

PROVISIONAL BALANCE SHEET AS AT 31^ST OCTOBER 2007

SOURCES OF FUNDS		31.10.2007
SHAREHOLDERS FUNDS
1] Share Capital		16.498
2] Share Application Money		0.000
3] Reserves & Surplus		24.876
4] (Accumulated Losses)		0.000
NETWORTH		41.374
LOAN FUNDS
1] Secured Loans		18.100
2] Unsecured Loans		13.788
TOTAL BORROWING		31.888
DEFERRED TAX LIABILITIES		0.090
TOTAL		73.352
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		0.747
Capital work-in-progress		0.000
INVESTMENT		0.000
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	26.979
	Sundry Debtors	83.066
	Cash & Bank Balances	3.222
	Other Current Assets	5.492
	Loans & Advances	5.935
Total Current Assets		124.694
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	50.511
	Provisions	1.578
Total Current Liabilities		52.089
Net Current Assets		72.605
MISCELLANEOUS EXPENSES		0.000
TOTAL		73.352

PROVISIONAL PROFIT & LOSS ACCOUNT AS AT 31^ST OCTOBER 2007

PARTICULARS		31.10.2007
Sales Turnover		162.999
Other Income		0.080
Total Income		163.079
Profit/(Loss) Before Tax		4.452
Provision for Taxation		0.974
Profit/(Loss) After Tax		3.478
Expenditures :
	Cost of Sales	150.571
	Employees Remuneration	0.639
	Other Expenses	3.666
	Bank Interest and Charges	3.571
	Depreciation	0.180
Total Expenditure		158.627

LOCAL AGENCY FURTHER INFORMATION

BUSINESS

Manufacturers of Polymers & Copolymers for Paints, Textiles, Paper, Leather and Packaging Industries.

Subject also manufactures Solvent based Adhesives for Machine Applications.

Manufacture, export and trade of various types of Synthetic resin emulsions and adhesives, including textile auxiliaries, process chemicals, construction chemicals etc.

Financial Highlights

During the year the Company posted the profits before Depreciation, Interest and Income Tax. The net profit before depreciation and interest during the year 2006-07 are at 7.994 Millions. In view or the good consistant profitability, growth, development and excellent support from the banker Punjab National Bank, the company is on the path of consistent growth.

Performance and Operation

During the year under review, the company have achieved a turnover of Rs. 211.241 Millions as compared to turnover of Rs. 153.274 Millions for the year indicating increased by 37.86 % and PBT increased by 73.59 % as compared to turnover of Rs. 153.274 Millions for the previous year indicating increased by 37.86 % and PBT increased by 73.59 % as compared to previous year 35.45 %

Future Outlook

There is good demand for the product of the company. the company has developed a construction chemicals, Textiles chemicals and special chemicals for Match Industry which is having good demand in Domestic as well as International Market.

OPPORTUNITIES

With the Marketing Arrangements the company has now made with giant corporate, the strength in terms importing / buying materials in bulk and storing them has increased capacity and this will help the company to cater the needs of big consumers and manufacturers.

The company can now utilize its increased strength with the help of developed market in the other regions of the country.

In view of Marketing Agreement the company has made with good concerns, the indirect cost on the materials will go down and as a result the company can utilize the improved margin opportunity for development of business.

GENERAL INFORMATION

SSI Registration No.	11/24/80861 Dated 04/11/1988
VAT RC No.	421202S00515
CST RC No.	421202C00268
Central Excise RC No.	AACCS3432RXM001
Pollution Control Board RC No.	MPCB/WPAE/KN-131-04/CC-25 dated 18/01/2005
Power Connection	27 HP Connected Loan obtained from MSEB

GENERAL OBSERVATION

Reference	Mody Enterprises
Name of the Person	Mr. Santosh [MGR]
Contact Number	23430501
Since How Long Known	10/12 Years
Experience	Very Good
Maximum Limit Dealt	Rs. 1.000 Million / Rs. 1.500 Millions Monthly
Reference	Venki Chem
Name of the Person	Mr. Paresh / Ms. Nisha
Contact Number	9223433053
Since How Long Known	10 Years
Experience	Good
Maximum Limit Dealt	Rs. 15.000 Millions / Rs. 20.000 Millions 60-90 days
Reference	Nayakem Organics Private Limited
Name of the Person	Mrs. Kamat
Contact Number	24936008 / 24225392
Since How Long Known	10/12 Years
Experience	Satisfactory
Maximum Limit Dealt	Upto Rs. 0.700 Million – 60 days
Reference	D R Karkariya and Company
Name of the Person	Mr. Dilipbhai
Contact Number	22614389
Reference	Paxchem Limited
Name of the Person	Mr. Anil Sharma
Contact Number	65802400
Since How Long Known	10/12 Years
Experience	Good
Maximum Limit Dealt	Less than Rs. 0.100 Million
Reference	Classic Solvants Private Limited
Name of the Person	Dhiren Bhuta
Contact Number	91-22-26844646
Since How Long Known	5 Years
Experience	Good

SHARE POSITION

The company has already increased its authorised share capital from Rs. 2.500 Millions to Rs. 20.000 Millions. Share application money of Rs. 14.000 Millions is converted to shares and shares are allotted on premium basis of Rs. 50.000 millions to Mr. P. S. Sharma and Mr. S. S. Sharma. Now share holding pattern is as follows :

Name of shareholder	No. of Shares
Mr. Sthanusesha Sundram Sharma	15881
Mr. Padmanabha D. Sharma	32298
Total	48179

Bankers Charges Report as per Registry

Name of the company

SPECIALITY POLYMERS PRIVATE LIMITED

Presented By

SPECIALITY POLYMERS PRIVATE LIMITED and Punjab National Bank, PNB House, Sir P. M. Road, Mumbai – 400001, Maharashtra, India

1) Date and description of instrument creating the change

2^nd August, 2002

Hypothecation Agreement

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

Rs. 22.500 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

Stock Book Debts and Machineries

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

Nature of Facility	Limit / Rs in Millions
Fund Based
Cash Credit [H]	2.750
Packing Credit	2.750
[Inland Bills discounting] [Within Cc Limit]	[1.500]
Post Shipment	6.500
Total	12.000
Non Fund Based
ILC / FLC [DP/DA]	9.500
ILC / FLC [DA]	[8.000]
Bank Guarantee	1.000
Total	10.500
Total Commitment	22.500

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

Punjab National Bank, PNB House, Sir P. M. Road, Mumbai – 400001, Maharashtra, India

6) Date and brief description of instrument modifying the charge

29^th December, 2004

Hypothecation of Goods and Book Dents to secure Cash Credit Facility

Letter No.

[Both constitute single modification]

Original charges dated 02.08.2002 for Rs. 22.500 Millions

Modification dated

19.10.2002 charge increased from Rs. 22.500 Millions to Rs. 23.600 Millions Limit Granted on 19.10.2002 is regularized and enhanced vide letter dated 31.03.2003

31.03.2003 charge increased from Rs. 23.600 Millions to Rs. 32.000 Millions

31.07.2003 charge increased from Rs. 32.000 Millions to Rs. 32.800 Millions

10.11.2003 charge reduced from Rs. 32.800 Millions to Rs. 32.750 Millions

05.07.2004 charge increased from Rs. 32.750 Millions to Rs. 33.500 Millions

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.

By the present modification charge reduced from RS. 33.500 Millions to Rs. 32.500 Millions covering following facility

Rs in Millions

Particulars	Previous Limit	Current Limit
Fund Based
Cash Credit [Hyp.]	5.500	5.500
Packing Credit	4.000	3.000
Post Shipment	5.000	5.000
Non-Fund Based
ILC/FLC/[DA/DP]	17.500	17.500
Letter of Guarantee	1.500	1.500
Total	33.500	32.500

Corporate identity number of the company	U24295MH1988PTC049233
Name of the company	SPECIALITY POLYMERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No. 1, Navarang Apartments, 1^ST Floor, Behind S.I.A. High School, Kopar Road, Dombivli (West), Thane - 421202, Maharashtra
This form is for	Modification Charge
Type of charge	Equitable mortgage or mortgage of property by deposition the title deeds
Particular of charge holder	Punjab National Bank, PNB House, Sir P. M. Road, Mumbai – 400001, Maharashtra, India pnbhouse@vsnl.net
Amount secured by the charge	Rs. 22.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Interest : as per Bank’s Norms
Description of the property charged indicating whether it is a charged on	Immovable properties
Particulars of the property charged	Plot No. 3, Badlapur Industrial Estate , Village Kharavi, Adm. 501.42 sq. mtrs. Together with factory land building, structures, plant and machinery standing thereon.
Charge identification number of the charge to be modified	80005177
Brief description of the instrument modifying the charge under section 135	Draft letter of continuity
Date of instrument modifying the charge	05.06.2006
Particulars of the present modification	Charge increased from Rs. 32.000 Millions to Rs. 41.500 Millions

PRODUCTS

PRODUCT		APPLICATIONS & PROPERTIES
DIPICOL SH	Modified Vinyl Acetate Polymer	-General purpose carpenter's wood Adhesive for Furniture, Paper, Pencil Joints, Sports Goods, T.V. Cabinets, Radio, Wood Veneering, Metal Can Labelling, Wall Paper, Sand-Texture etc.
DIPICOL 0310	Vinyl Acetate Homopolymer	-Basic product for modification into adhesive for wood, paper, matchbox, pencil and packaging industry.
DIPICOL 0321	Plasticised Vinyl Acetate homopolymer.	-Adhesive for paper and rayon industry.
DIPICOL 0320	Modified Vinyl Acetate homopolymer.	-Adhesive for packaging industry where card-board cartons, paper boxes, packets are manufactured for packaging various types of items.
DIPICOL 0352	Modified Vinyl acetate homopolymer.	Adhesive for packaging materials for grease & oils, cardboard, fabrics, leather food-products, suitable for machine-application (fast drying)
DIPICOL 0350	Modified Vinyl acetate homopolymer.	Low viscosity adhesive similar for Dipicol 0352. Good electrolyte stability. Suitable as a binder for paper coating composition.
DIPICRYL 0334	Vinyl Acrylic Copolymer Emulsion	Adhesive for PVC to cork, Aluminium foil to paper/cork, polycoated paper cork sheet, suitable for machine application.
DIPICRYL 03PM	Vinyl Acrylic Copolymer Emulsion	Adhesive for PVC to wood, for cigarette tips, metal foils to wood, leather and paper
DIPICRYL 03 LM	Vinyl Acrylic Copolymer Emulsion	Adhesive for paper lamination (PVC, gelatin, BOPP films to paper), for Polyurethane foam to wood, paper and cloth. Suitable for machine application.
DIPICRYL 0385	Vinyl Acrylic Copolymer Emulsion	Specially developed adhesive for match-box industry. Soap wrappers.
DIPICOL 0444	Vinyl Acrylic Ter Polymer Emulsion.	Excellent adhesive for stickers (Paper, PVC, foil stickers) suitable for machine application. Labelling adhesive for Plastic surface and glass.
DIPICRYL 0345	Acrylic Acrylic Ter Polymer	For adhesive tapes, excellent water/alkali resistance suitable for machine application.
DIPICOL FG	Modified Polystyrene Emulsion.	Binder for fibre-glass industry.
DIPICRYL 0377	Vinyl acrylic solution Ter Polymer.	Pressure sensitive adhesive for premium quality PVC / Paper / BOPP stickers and tapes. PVC to wood adhesive.
DIPICOL RM	Modified Vinyl Copolymer	Remoistenable adhesive for stamps labells, envelops and paper tapes.
DIPICOL DX	Dextrine-solution	Adhesive for corrugated boxes, glass bottle labelling
DIPICRYL CT	Self cross linking Acrylic Ter Polymer Emulsion	Adhesive for non-woven fabrics, Binder in Pigment and Khadi Printing. As an Adhesive in electrostatic flock printing for textiles.
DIPICOL-0301	Vinyl Acetate Homopolymer	-Used for semi-permanent finishing of Textile fabrics such as voiles, muls, poplins, nylon and other synthetic fabrics. Excellent adhesion to natural and synthetic fibers. Can be used for finishing knitted fabrics. Compatible with starch, dextrin and thermosetting resins.
DIPITEX-0312	Flexible-homopolymer	-For Semi-Permanent finishing of Textile fabrics, Imparts stiffness, flexibility and fullness to fabrics.
DIPITEX ECN	Self reactive Acrylic Copolymer.	-Used for economic Pigment Printing.
DIPITEX-SLN	Self reactive Acrylic Copolymer.	Used for high quality Pigment Printing.
DIPICRYL-CT	Self Crosslinking Acrylic Copolymer Emulsion.	-Binder for nonwoven fabrics.
DIPITEX-KB	Terpolymer Emulsion	-Binder for Khadi & Pigment. Adhesive for fabrics and foam lamination. Suitable  in Electrostatic flock-printing of textiles.
DIPITEX-FB	Polymer dispersion	-Foam binder suitable for Screen Printing on textiles or paper. Suitable in Electrostatic flock-printing of textiles.
DIPITEX-TKR	Terpolymer dispersion in solvent	Excellent Kerosene resistant table adhesive for screen printing, can be applied on Rubber blanket and polyster film.
DIPITEX-T30 T40, T50	Terpolymer dispersions in solvent	DIPITEX T30, T40, T50, becomes tacky at 30^o, 40^o and 50^o C respectively. They are used as Permanent table adhesive for screen printing for all types of fabrics such as Polyster, nylon, Polyster-Cotton. Can be fixed at 30^o, 40^o and 50^o C and after printing can be peeled off easily at lower temperature.
DIPICRYL-TH	Alkali soluble Acrylic Copolymer emulsion	Extensively used for thickening latex for flock applications. Can replace kerosene partially or fully in pigment print paste formula.
DIPITEX-ACH	Polymer Solution	Imparts firm, full and smooth handle to fabrics. Can be used in wash and wear finishing to get softness and drape. Gives slip resistance, pilling resistance to all kinds of fabrics. Can be used as flocculating agent. Can be used with thermosetting resins to modify handle of fabrics.
DIPICRYL-0382	All Acrylic Copolymer Emulsion.	-Recommended for excellent interior / exterior paints. Excellent flow levelling properties. Good hiding power. Low dirt pick up. Good water & alkali resistance. Good freeze thaw stability.
DIPICRYL-EM0372	All Acrylic Copolymer Emulsion	-Used in making interior / exterior paints. Excellent alkali resistance and pigment binding capability. Excellent colour development with tinters.
DIPICRYL-03SA	Styrene Acrylic Copolymer Emulsion.	Used in making exterior / interior and road-marking paints. Excellent water/Alkali resistance. Low particle size to enhance excellent pigment binding capability.
DIPICRYL-03D6	Vinyl Acetate- Copolymer Emulsion.	For premium quality interior emulsion paints. Excellent flow levelling and brushability. Good Alkali/Water resistance. Excellent mechanical and electrolyte stability.
DIPIVIN-0325	Vinyl Acrylic- Copolymer Emulsion	-Speciality developed for cement/sandex paints. Good water and alkali resistance. Good Electrolyte and mechanical stability. Good pigment binding and brushability.
DIPIVIN-0315	Vinyl Acrylic Copolymer Emulsion.	-Used in making Good quality interior wall paints. Good water resistance, Excellent flow levelling. Good Electrolyte and mechanical stability.
DIPIVIN-EG	Vinyl Acrylic- Copolymer Emulsion.	-Low cost fine particle size emulsion with good pigment-binding. Good water/Alkali resistance. Suitable for pigment paste used for paper coating.
DIPIVIN-03PP	Polyvinyl Acetate Plasticised Emulsion	-Suitable for making economical high viscosity, interior emulsion paints.
DIPICOL-DDL	Polymer Solution.	-Used as 'Dry distemper liquid' to promote adhesion and chalking resistance.
DIPICRYL-TH	Alkali soluble Acrylic Copolymer- Emulsion	-Used as a thickner in plastic emulsion paints. Compatible with Vinyl Acetate and Acrylic homopolymers and copolymers. Gives good therological properties.
DIPICRYL-G-0311	Polycrylate type - thickening agent.	-Used as a thickner in plastic emulsion paints. Compatible with Vinyl Acetate and Acrylic homopolymers and copolymers. Gives good theological properties.

MR. STHANUSESHA SUNDRAM SHARMA

DETAILS OF INDIVIDUAL ASSETS AND LIABILITIES AS ON 31^ST MARCH 2007

Particulars	Amount in Millions	Market Value in Millions
Immovable Property	0.080	1.500
Ownership Flat
Movable Property
Gold Ornaments [1050Grm]	0.175	1.103
FDR	0.064	0.064
Equity Shares and Investments in Speciality Polymers Private Limited	4.928	29.569
UTI	0.005	0.005
Cash in Hand	0.050	0.050
Bank Balance	0.009	0.009
Total	5.311	32.300

MR. PADMANABHA D. SHARMA

DETAILS OF INDIVIDUAL ASSETS AND LIABILITIES AS ON 31^ST MARCH 2007

Particulars	Amount in Millions	Market Value in Millions
Immovable Property
Ownership Flat	0.211	0.388
Movable Property
Gold Ornaments [1050Grm]	0.139	0.872
FDR	0.059	0.059
Equity Shares and Investments in Speciality Polymers Private Limited	11.570	69.419
Cash in Hand	0.072	0.072
Bank Balance	0.025	0.025
Total	12.076	70.835
Less :
Liabilities
Loans and Advances	0.139	0.139
Total	11.937	70.696

Existing Working Capital Facilities

Fund Based	Rs. 20.000 Millions
Non Fund Based	Rs. 21.500 Millions
Total	Rs. 41.500 Millions

Proposed WC Facilities

For the Year 2007-08

Fund Based	Rs. 55.000 Millions
Non Fund Based	Rs. 21.500 Millions
Total	Rs. 76.500 Millions

For the Year 2007-08

Fund Based	Rs. 75.000 Millions
Non Fund Based	Rs. 26.500 Millions
Total	Rs. 101.500 Millions

Takeover cum enhancement of credit facilities in the name of Speciality Polymers Private Limited

Existing working capital limit of Rs. 41.500 Million Punjab National Bank, P. M. Road, Fort, Mumbai – 400001

Rs In Millions

Name of the credit limits required	Amount [Existing]	Amount [Proposed 2007-08]	Amount [Proposed 2008-09]
Fund Based Working Capital	20.000	55.000	75.000
Cash Credit against Hypothecation of Stock	8.000	20.000	25.000
Packing Credit	6.000	15.000	20.000
Post shipment-FBP/FBD/FBNLC etc	6.000	20.000	30.000
Non Fund Based Working Capital	21.500	21.500	26.500
Inland / Foreign L/C	20.000	20.000	25.000
Bank Guarantee	1.500	1.500	1.500
Total credit facilities requested	41.500	76.500	101.500

SECURITY

Prime Security

The above facilities will be primarily secured by the following securities

Nature of the Security	Amount 2007-08	Amount 2008-09
Hypothecation of Stock	48.325	63.302
Hypothecation of Trade Receivables	75.702	98.820
Total for working capital	124.027	162.122

Collateral Security

The above facilities are and will be additionally secured by the following security.

Rs. In Millions

Particulars of the security	Name of the owner	Valuation as per valuation dated 06.01.2006	Present market valuation [Approx]
Hypothecation of all Plant and Machineries [Present and future]	Company	1.938	1.938
Equitable Mortgage of factory land and building situated at Plot No. 3, MIDC, Badlapur, Thane, Maharashtra	Company	2.882	4.000
Equitable Mortgage of Residential Flat No. 01, Navarang Apartments, Dombivli [West] Thane, Maharashtra	Mr. S. S. Sharma	1.029	1.750
Equitable Mortgage of Office premises at Flat No. B – 12, Navarang Apartments, Behind SIAH School, Kopar Road, Dombivali [West], Thane, Maharashtra	Mr. P. S. Sharma and Mrs. Meena P Sharma	1.036	1.750
Equitable Mortgage of land at Survey No. 13, Gut No. 85, Situated at Mouje Konsai, Taluka Wada, District Thane	Company	--	12.000
Total		6.885	21.438

DOMESTIC ORDERS ON HAND

SR. NO.	PARTY NAME	ORDERS RS. IN MILLIONS
1	PADMAVATI ENTERPRISES	12.500
2	NISHA CHEMICALS	12.300
3	SKS LABCHEM	11.500
4	J V & SONS	11.500
5	S R INTERNATIONAL	11.500
6	WESTERN INDIA	12.200
7	JAI BHARAT COLRPORATION	12.500
8	OTHERS	26.000

EXPORT ORDERS ON HAND

SR. NO.	PARTY NAME	ORDERS IN US$	ORDERS RS. IN MILLIONS
1	FOSAM COMPANY LIMITED	40128.00	1.585
	(A SAUDI FOSROC CO.)	36678.00	1.448
	ADD: P O BOX 11081	24992.00	0.987
	JEDDAH 2145 SAUDI ARABIA	40128.00	1.585
	TEL.: (02) 637 5354-6380692/3	25250.00	0.997
	FAX: (02) 637 5891 EXTN: 103	16192.00	0.639
		15136.00	0.597
	TOTAL:	198504.00	7.840
2	FAYFA CHEMICALS FACTORY (LLC)	147369.60	5.821
	ADD: P O BOX 8246, DUBAI	52800.00	2.085
	UAE TEL: (9714) 3472082	111720.00	4.412
	FAX: (9714) 3472042	46400.00	1.832
	TOTAL:	358289.60	14.152
3	AL GURG FOSROC LLC	50297.92	1.986
	ADD: P O BOX NO. 657	24376.00	0.962
	AL RAMOOL INDUSTRIAL ESTATE	14310.50	0.565
	RASHIDIYA, DUBAI	19414.40	0.766
	U A E	12659.50	0.500
		48752.00	1.925
		34240.00	1.352
		50297.92	1.986
		48752.00	1.925
		12650.50	0.500
		27016.00	1.067
		24036.48	0.949
	TOTAL:	366803.22	14.488
4	SPARYTEK COATING MFG. CO L L C	40480.00	1.598
	ADD: P O BOX NO. 27356, DUBAI	40480.00	1.598
	UAE TEL.: 06-7436020 FAX: 04-2275750	40480.00	1.598
	TOTAL:	121440.00	4.796
	GRAND TOTAL	1045036.82	41.278

BACKGROUND OF THE COMPANY AND PROMOTERS

Brief History of the Company

Subject is a Private Limited Company incorporated with Registrar of Companies, Maharashtra under Registration No. 11-49233 on 14^th October, 1988. it is a Small Scale Industrial unit engaged in the manufacture of various synthetic resin emulsions, adhesives, pressure sensitive adhesives, lamination adhesives, paint emulsions, textile binders, construction chemicals, paper coating benders and various solvent based adhesives etc. The company caters to Domestic as well as International Markets.

The company is an SSI Unit and the products manufactured by the Company have wide applications / use by various industries as well as Individual consumers. The products are used in Textile, paint, Paper, Match making, Packing industry, Furniture manufacturing, interior decorators, pressure sensitive, sticker manufacturers, Lamination, Carton manufacturers and construction industry etc. The demand for these products is very high and is increasing day by day.

Shri Sthanusesha Sharma, aged 57 years and Shri, Padmanabha Sharma aged 47 years are the directors of the company. Both the directors are Science graduates with vast experience in the line of business. Shri Sthanusesha Sharma has more than 30 years of experience in the production and development of Adhesives and Polymer Emulsions while Shri Padmanabha Sharma has an experience of more than 25 years in the line of activity. The Directors belong to a respectable family.

The factory of the company is located in MIDC Industrial Area, Badlapur, Thane District, Maharashtra.

The total area of the Plot is about 500 sq. meters and constructed area is about 2800 sq. fts, MIDC Badlapur is a well developed Industrial Estate with all infrastructural facilities and close proximity to the city of Mumbai. The Registered office of the company is situated at No. 1, Navrang Apartment, Dombivli [West], Thane District, Maharashtra. The directors are also residing at Dombivli [West]. The company has acquired land at Wada, a back ward area of Thane for future expansion. There are various, economical advantages / incentive for putting up the unit / activity at that place. With future expansion of the company at place will help it to reduce dependence getting job work done.

STRENGTHS

• The Company has a very strong foothold in the Chemical and Adhesive industry and it has long satisfactory association with foreign and Indian Multinationals, National and Regional medium and small size traders.

• The foreign Customers desire to develop their trade with the Indian market, and Company has established its name and quality products through the years.

• The company and the group has well established marketing and strong / experienced support from administration wing.

• Ready and fast export and local market for company’s products.

• Indigenously developed Technical know-how, with huge learning curve benefit.

• Established business relations both in Domestic and Export markets.

• Availability of the required infrastructure facility – Power and Water, Near to port.

• Low input cost of raw materials, utilities.

• Consistent quality by good manufacturing team work.

• Huge loyal customer base due to efficient quality service provided by the company focusing on customer satisfaction and a 20 year long reputation.

• 30 years of experience of promoter of the group in manufacturing and marketing various chemical products which has given them the ability to know the pulse of the industry.

Catering to the needs of many small and big manufacturers for 90-120 days credit facility.

The company was earlier banking with United Western Bank Limited, Dombivli [East] branch. The limits were taken over by Punjab National Bank in June 2002. the company has been dealing Punjab National Bank since then.

The major Competitors to the Company are :

• Vlisen Organics
• Pidilite Industries Limited
• Jubiliant Organics Limited

The company has been able to effectively compete with these companies by virtues of certain advantages enjoyed by the company like SSI status, personal supervision and control, duty exemptions etc, which give on edge to the company over competitors.

The company is regular supplier of products to reputed companies like WIMCO Limited, Fosroc Chemicals India Limited, Monarch Self – Adhesive Tape Manufacturing Company Private Limited etc. besides supplying to various dealers, distributors ad other reputed buyers in Mumbai, Kalyan, Ulhasnagar and interior parts of Maharashtra. It is now expanding to other states in India. Besides, the company has good potential in overseas market also.

Promoters of the Company

Board of Directors

Both the Directors being technocrats are having experience of more than 20 years in the line of manufacture, production and marketing of Adhesives and resin emulsions. Hence, both the personally supervision the entire functioning of the Unit. The growing performance of the unit during the last 5 yeas in all parameters is a direct reflection of the devotion, experience, efficiency and capability of the directors in running the Unit.

ASSOCIATE CONCERN AND ITS PERFORMANCE

Speciality Polymers Private Limited has an associate concern i.e. DEX-VIN Polymers Private Limited. This a private limited company registered under Reg. No. 11-57006 of 1990on 20the June 1990 at Registrar of Companies – Maharashtra. The company has following two Directors at present.

Mrs. Meena Padmanabha Sharma

Mrs. Laxmi S. Sharma

The company is engaged in production and marketing of Polymer Emulsions for Paint, construction and packaging industries. The adhesive is also used in paper an textile industries too.

The key financial indicators of the company for last 3 years are as under :

For the year ended	31.03.2005	31.03.2006	31.03.2007
Net Sales	91.936	150.006	163.701
Net Profit	1.037	1.108	1.872
Net Worth	19.520	20.628	24.150

This company is helping to Specialities Polymers Private Limited to provide job work facility to attain targeted sales / turnover.

The company is enjoying credit facilities to the tune of Rs. 53.000 Millions [Rs. 5.000 Millions Term Loan Rs. 22.000 Millions Fund Based working capital limits and Rs. 26.000 Millions Non Fund Based working capital credit facility] from Bank of India, D. N. Road Branch, Mumbai.

TECHNICAL ASPECTS OF THE PROJECT

The company has maintained continuous growth and progress by following consistent methodologies, by monitoring the quality of raw materials and the finished products. The strong position in the area of production and marketing is being achieved by developing new approaches to its business activities. These mainly involve manufacturing new products, while introducing resource saving technologies.

The product-wise technical aspects are elaborated hereunder :

Synthetic resin emulsions

Synthetic resin emulsions are manufactured by the process of polymerization of Vinyl Acetate in presence of protective colloid e.g. Poly Vinly Alcohol, Hydroxy Ethyl Cellulose, Modified Starch, Buffer Sodium Bi Carbonate, emulsifiers such as S.L.S. ethylene oxide condensate and free radical catalyst such as Potassium per sulphate at the elevated temperature of 70 to 70⁰ C. Type of polymerization proves is delayed addition type. This is further modified by adding plastcizers. Fillers and ant fungal chemicals. Reactions are all exothermic. During the reaction cooling is most essential. Once addition of monomer is over the relevant mass is maintained at high temperature of 80 to 82⁰ C. for about 1.5 hrs. then mass is cooled preservatives are added and the materials is discharged as per the required packing.

Synthetic resin Solutions

The process is similar to the above except instead of water the different types of solvents are used Toluene, Xylene or Ethyl Acetate. Reaction is carried out in the presence of Catalyst Bensoyl Peroxide at high temperature.

Synthetic resin Adhesives

Synthetic resin emulsion is modified by plasticizers, extenders, emulsifiers, natural resin solutions and preservatives as per the requirement of the specific use. This is made to mix the homogeneous mix by continuous mixing of the mass to attain the specific property.

Process Chemicals

Different chemical solvents are mixed together manually to get the uniform mix.

Textile Auxiliaries

Some of the Synthetic Resin Emulsions are further modified by adding additives. These products are used in textile processing units for sizing of yarns and finishing of clothes.

LOCATION AND SITE

The Plant of the company is located in MIDC Industrial Area, Badlapur, Thane District, Maharashtra. The total area of the plot is about 500 sq. meters and constructed area is about 2800 sq. feets. MIDC Badlapur is a well developed Industrial Estate with all infrastructural facilities and close proximity to the city of Mumbai. The location is very ideal since it is coming under BMRDA Zone, which is considered under ‘A’ category as per industrial policy of the state.

The company has corporate office at Dombivli, which is ideally located at carryout export and import activity operations. Office is well equipped with fax, internet connections, Xerox machine, Scanner etc.

Infrastructure Facility

Electricity : The power equivalent to 30 HP is available which is supplied by Maharashtra State Electricity Board.

Water : MIDC tap water is available in required qualities for Badlapur factory. In proposed factory, water is ample available easily through bore.

Transport and Communication : Good transport and communication facilities by rail and road, Mumbai Air and Sea transport services are available very well for need of export. Excellent communication facilities are also easily available. These include telephone, telex, fax and angadia services. For local distribution company is also having own vehicle and proposed to purchase more vehicles.

Market and Marketing Arrangement

Market in Paint Industry :

The paints and coatings sector will register healthiest gains. Demand for emulsions in paints and coatings is rising well in excess of paint industry shipments as emulsions, particularly acrylics, find greater use various industrial and special purpose coatings, such as motor vehicle finishes, general industrial coatings and traffic paints. This growth will bolster an already notable position in architectural and decorative paints, where water-based emulsions are favored due to their environmental and ease-of-use advantages compared to traditional oilbased paints. The primary beneficiary of these trends will be acrylic emulsions.

Coating applications. Paper and board markets also will be stimulated by enhanced graphic capabilities used in cartons and paperboard packaging for retail markets.

Demand for emulsion polymers used in adhesives will offer favorable though below average gains, benefitting from solid demand arising from the important paper and paperboard packaging materials sector as well as from the tapes and labels end-use segments. Volume demand will continue to be led by low cost PVA adhesives used in high speed packaging processes, particularly paperboard cartons.

North America and Western Europe accounted for 65 percent of global demand for emulsion polymers in 2003. In addition to dominating worldwide output of key emulsion-containing products such as latex paints, coated paper and general purpose adhesives, suppliers in these regions have made the greatest efforts to improve the environmental compatibility of their offerings, including a much greater share of paints and coatings production accounted for by water-based emulsions. Nonetheless, the fastest gains in emulsion polymer demand through 2008 will arise in developing regions, particularly Asia. Rapidly developing countries such as China and India have only recently begun the move from solvent to water-based paints.

World emulsion polymer demand is forecast to increase 4.5 percent per year through 2008 to 11.4 million metric tons, representing an improvement over the already strong performance of the 1998-2003 period as a result of stronger economic growth prospects worldwide. Market value is projected to rise 6.1 percent per annum to $24 billion, benefiting from shifts in product mix toward higher priced emulsions, primarily acrylics.

The emulsion polymer market is expanding in part due to a good environmental profile since, as water-based materials, their use results in lower emissions of volatile organic compounds during cure. Emulsions also offer low cost, easier handling and clean-up, good adhesion, flexibility and abrasion resistance.

Increasingly stringent environmental regulations are pressuring suppliers of emulsion polymers to produce more environment friendly and low volatile organic compound (VOC) emitting products. However, customers continue to demand high quality and better performance products at competitive prices. The challenge suppliers face is developing products that meet strict performance requirements while keeping pace with changing environmental regulations. In addition, as the business becomes more global in nature, suppliers need to conform to different regional regulations. Suppliers are increasingly focusing on designing application-oriented products to provide specific characteristics such as excellent gloss finish, water resistance, and ink receptivity for paper coating; durability, gloss, and water and scrub resistance for paints and inks; and tensile strength, flexibility, and flame resistance for textiles and carpets.

Export potential is large due to repetitive usage wide applications and usages, the demand is growing. With existing export marketing infrastructure it is possible to gain substantial export market both in developed and developing countries.

The requirement of the products manufactured by the company is very high. With wide applications and uses, the demand is growing.

- The products such as Acrylic Emulsions, Copolymer emulsions are major raw material for Paint Industry. Nowadays Paint industry is growing at the rate of 8 % P.A. thus there is always growing demand for the products.

- Products of the company such Tape Adhesive, Lamination Adhesive, Polymer Adhesive are major consumption for Packing Industry. And packaging industry is flourishing with a great speed.

- Various types of Wood adhesives are used in Furniture and upholstery industry, with expert marketing by the company, it can be precisely possible to maintain and increase excellent market for the products.

- Textile Binders and Finishing agents are products of the company. With Government’s Textile Industry are in boom. World wide Textile Industries are growing with rate of 20 % p.a.

Rapid industrialization and need of transporting the materials have resulted in requirements of packaging materials, laminated cartons and stickers are popular which establishes brand and attracts the customers. For packing purposes adhesives are must. Thus there is excellent demand for adhesives in different industries as a whole.

The recent market survey undertaken by the director revealed that the demand for the products very high and whatever quantities of products will be manufactured can be absorbed easily in the market. Further being a small scale industry, the company has better edge on account of lower overheads, excise beliefs and controlled management. Mumbai, Navi Mumbai, Thane and Kalyan are fast growing industrial and trading centers of the century. Most of the leading establishments have their offices in these places. This is precisely benefits the company in selling its products.

The major competitor of the company are :

• Pidilite Industries Limited
• Jubilant Organosys Limited

On account of available excise benefit, duty free import against advance licenses, low cost of operation of SSI unit, the company gets sufficient edge over the competitors.

Company Competitive edge over Competitor

The company has also got some advantages in particular. With the expertise of the company it has better leverage for responding and adjusting with the market behavior. Both Sharma brothers being in the industry since last 23 years have gained excellent experience in understanding of the market behavior and adjustments in products range. Both have already developed good contacts with users and traders in the product.

Marketing arrangements

The company has gained goods export orders form various places. After continuous efforts of last many years the Company has started exports to Saudi Arbia, Dubai, Jordan, Singapore, Sri Lanka and Hong Kong and there are enquiries from Egypt, Lebanon and Pakistan.

OPERATING STATEMENT

For the year ending on 31^st March	2008 [Estimated]	2009 [Projected]
GROSS SALES
Domestic Sales	221.419	274.153
Export Sales	81.390	121.126
Other Income	0.000	0.000
Total	302.809	395.276
Less : Excise Duty	10.015	13.638
Less : Sales Tax	0.000	0.000
Net Sales	291.794	381.641
% Increase or Decrease	38 %	31 %
COST OF SALES
Raw Materials
Consumption RM Imported	85.009	114.538
Purchase – Indigenous	184.362	236.463
Packing Materials	0.000	0.000
Stores and Spares Consumption	0.000	0.000
Power and Fuel	0.284	0.291
Direct Labour	0.941	1.035
Repairs and maintenance	0.047	0.050
Other Manufacturing Expenses	4.275	5.985
Depreciation	0.257	0.257
Cost or Production	275.175	358.619
Add : Opp. Stock of W.I.P.	6.950	7.571
Sub – Total	282.124	366.489
Less : Cl. Stock of W.I.P.	7.570	9.882
Sub Total	274.554	356.307
Add : Op. stock of Finished Goods	0.533	0.000
Sub – Total	275.087	356.307
Deduct : Cl. Stock of Finished Goods	0.000	0.000
TOTAL COST OF SALES	275.087	346.307
Selling general and Administrative Expenses	5.216	6.844
Sub Total	280.303	363.151
Operating Profit Before Interest	11.491	18.489
Interest [Net] / Bank Charges	6.469	9.300
Operating Profit After Interest	5.022	9.189
Add : other Non operating Expenses
Miscellaneous Income	0.100	0.125
Sun – Total [Income]	0.100	0.125
Deduct other non-operating Expenses
Preliminary Expenses	0.000	0.000
Previous Year’s Adjustment	0.000	0.000
Sub-total [Expenses]	0.000	0.000
Net of other non-operating Income / Expenses	0.100	0.125
Profit Before Tax	5.122	9.314
Provision for Taxes	1.532	2.794
Net Profit	3.585	6.520
Equity Dividend Paid	0.000	0.000
Dividend Rate	0.00	0.000
Tax on Dividend	0.00	0.000
Retained profit	3.585	6.520
Retained Profit / Net Profit %	100 %	100 %

BALANCE SHEET

For the year ending on 31^st March	2008 [Estimated]	2009 [Projected]
Current Liabilities
Short-term Borrowing Form Banks
From applicant Bank	55.000	75.000
From other banks	0.000	0.000
Sub Total
Short Term Borrowing From Others	0.000	0.000
Sundry Creditors [Trade]	15.364	19.705
Sundry creditor [Under letter of credit]	20.000	25.000
Advanced Payments from Customers Deposits From Dealers	0.000	0.000
Provision for Taxation	1.537	2.794
Dividend Payable	0.000	0.000
Other Stationery Liabilities	0.200	0.225
Deposits / Instalments of Term Loan / DPGs / Debentures etc.	0.000	0.000
Other Current Liabilities and provision	1.500	1.750
Sub Total	38.600	49.475
Total Current Liabilities	93.600	124.475
Term Liabilities
Debentures	--	--
Preference Shares	--	--
Term loans	0.000	0.000
Deferred payment Credited	0.000	0.000
Deposits From promoters / Others	0.080	3.000
Total Term Liabilities	0.080	3.000
Total Outside Liabilities	93.680	127.475
Net Worth
Ordinary Share Capital	16.498	16.498
General Reserve	12.000	12.000
Share premium	0.000	0.000
Share Application Money	0.000	0.000
Surplus [+] or Deficit [-] in profit and Loss Account	13.058	19.578
Net Worth	41.556	48.076
Total Liabilities	135.236	175.551
Current Assets
Cash and Bank Balance	0.089	0.558
Fixed Deposit Margin	2.000	2.000
Investments	0.000	0.000
Receivables other than deferred and exports including bills purchased / disc. By bank	55.355	68.538
Export receivables including bills purchased / disc. By bank	20.347	30.282
Installation of Deferred Receivables	---	--
Inventory
Raw Materials
Imported	17.710	23.862
Indigenous	23.045	29.558
Finished Goods	0.000	0.000
Stock in Process	7.570	9.882
Tores and Spares	0.000	0.000
Adv. To Supplier of Raw Materials and Stores / Spares	0.750	1.000
Advance Payment of Taxes	1.537	2.794
Other Current Assets	2.000	2.500
Total Current Assets	130.403	170.974
Fixed Assets
Gross Block	7.481	7.481
Depreciation	2.777	3.033
Net Block	4.705	4.448
Total Other Current Assets	0.000	0.000
Intangible Assets	0.128	0.128
Total Assets	135.236	175.551
Tangible Net Worth	41.428	47.948
Net working capital	36.803	46.500
Current Ratio	1.39	1.37
Total outside Liabilities / Tangible Net Worth	0.226	0.266

PAST PERFORMANCE AND FUTURE PROJECTIONS

For Year Ended 31 March	31.03.2008 [Estimated]	31.03.2009 [Projected]
Paid up Capital	16.498	16.498
Share Application Money	0.000	0.000
Tangible Net Worth	41.428	47.948
Investment in cos. of which associated companies
Adjusted TNW	41.428	47.948
Net Block of Fixed Assets	4.705	4.448
Net Business Income	291.794	381.641
Other Income	0.100	0.125
Depreciation	0.257	0.257
Gross profit [PBT]	5.122	9.314
Net profit / Loss	3.585	6.520
Cash Accruals	3.685	6.645
Ratios
Current ratio	1.39	1.37
Total Outside Liability / TNW	2.26	2.66
Profitability % PAT / Net Sales	1.23	1.71

Comments on major financial indicators

Share Capital

The company has received share application money of Rs. 13.525 Millions during th year 2005-06 and the captioned amount has increased to Rs. 14.000 Millions as on 31.03.2007. However the equity shares are pending for allotment. With this share application money the paid up share capital has increased as on 31.03.2006 and 31.03.2007 as indicated above.

To match the own contribution with the rise in turnover / business and improve Net Working Capital the promoters have brought the capital in the year 2006-07 to the tune of Rs. 14.000 Millions. This has been reflected in the form of Share Application Money as on 31.03.2007 and converted in to capital issuing of equity shares.

In the year 2008-09 the promoters also propose to introduce funds of Rs. 3.000 Million as unsecured deposits from relatives and friends to improve the own stake however the captioned rise in unsecured loans has not been considered as quasi capital in the CMA data and reported under the term liability head.

Tangible Net Worth

The company has increased share capital and it has retained major part of its operational profit in the business as a result the TNW has been on improving trend. With the estimated / projected improvement in the profitability in current year as well as next year and retaining it in the business the TNW is expected to improve further as on 31.03.2008 and 31.03.2009.

Working Capital Facilities Assessment and Justification

In view of estimated sales of Rs. 291.794 Millions in the Year 2007-08 and projected sales of Rs. 381.641 Millions in the year 2008-09, the company has worked out the requirement of working capital finance of Rs. 76.500 Millions for the year 2007-08 and Rs. 101.500 Millions for the year 2008-09 on the following assumptions :

Rs in Millions

For the year ending on 31^st March	2008 [Estimated]	2009 [Projected]
Current assets
Raw materials
Imported	17.710	23.862
Months’ Consumption	0.250	0.250
Indigenous	23.045	29.558
Months’ Consumption	0.150	0.150
Finished goods	0.000	0.000
Months’ Cost of Sales	0.000	0.000
Work in Process	7.570	9.882
Months’ Cost of Sales	0.033	0.033
Receivables – Domestic	55.355	68.538
Months’ Sales	0.300	0.300
Receivables – Exports	20.347	30.282
Months’ Sales	0.300	0.300
Advance payment of Taxes etc	1.537	2.794
Other Current Assets	4.839	6.058
Total Current Assets	130.403	170.974
Current Liabilities
Creditors – General	15.364	19.705
Months’ Purchase	0.068	0.067
Creditors [L/c]	20.000	25.000
Months’ Purchases	0.300	0.300
Other Current Liabilities	3.237	4.770
Total Current LIA	38.600	49.475
Total Current Assets	130.403	170.974
Other Current Liabilities	38.600	49.475
Working Capital Gap [WCG]	91.803	121.500
Mini. Stipulated Net Working Capital [25 % of Total Current Assets]	27.514	35.173
Actual / Proj. Net Working Cap.	36.803	46.500
Item 3 Minus Item 4	64.289	86.327
Item 3 Minus Item 5	55.000	75.000
MPBF [Maximum Permissible Bank Finance]	55.000	75.000

FUND FLOW STATEMENT

For the year ending on 31^st March	2008 [Estimated]	2009 [Projected]
Sources
Net profit [After Tax]	3.585	6.520
Add bank : Depreciation	0.257	0.257
Increase in Term Liabilities
Increase in Share Capital and application money	0.000	0.000
Increase in quasi capital	0.000	0.000
Reserve and surplus	0.000	0.000
Decrease in
Fixed assets	0.000	0.000
Other non current assets	4.085	0.000
Intangible assets	0.000	0.000
Total	7.926	9.697
USES
Investment	0.000	0.000
Decrease in Term Liabilities	0.000	0.000
Increase in
Fixed Assets	4.213	0.000
Other Non- Current Assets	0.000	0.000
Increase in Capital Work in progress	0.000	0.000
Dividend Payment	0.000	0.000
Total	4.213	0.000
Long Term Surplus [+] / Deficit [-]	3.713	9.667
Increase / Decrease in Current Assets	29.783	40.571
Increase / Decrease in Current Liabilities	[8.529]	10.874
Increase / Decrease in WCG	38.311	29.697
Net Surplus [+] / Deficit [-]	[34.598]	[20.000]
Increase / Decrease in Bank Borrowing	34.598	20.000
Increase / Decrease in Net Sales	291.794	89.847
Break up of
Increase / Decrease in Raw Material	20.510	12.664
Increase / Decrease in Stock in Process	0.620	2.312
Increase / Decrease in Receivables	[0.533]	0.000
Domestic	9.824	13.184
Export	1.577	9.934
Increase / Decrease in Stores and Spares	0.000	0.000
Increase / Decrease in Other Current Assets	[2.215]	2.477
Total	29.783	40.571

JUSTIFICATION

Raw Material and WIP

Rs in Millions

	2008 [Estimated]	2009 [Projected]
Imported Raw Materials	17.710	23.862
Months’ Consumption	2.50	2.50

Inventories of inputs are required at a level from where smooth operation of production are regular timely supply to the customers can be ensured. The raw material holdings have been considered for the minimum stock level at factory sites of the company. it was at the level of 2.89 months as on 31.03.2006 and at the level of 3.98 as on 31.03.2007. in view of estimated increase in turnover the imported raw material holding period is expected to come down to the level of 2.50 months as on 31.03.2008 and 31.03.2009. Since the same are lower than the actual of the last two years the same may be considered reasonable.

	2008 [Estimated]	2009 [Projected]
Indigenous Raw Materials	23.045	29.558
Months’ Consumption	1.50	1.50

Raw materials holdings of domestic items were at level of 2.02 months as on 31.03.2006 which means that indigenous raw materials are required to be kept for more than 2 months on an average for smooth running of the production. This was at the level of 0.90 months as on 31.03.2007 lower than the average requirement of the holding on a particular date.

The indigenous raw materials holding is expected / projected to remain at the level of 1.50 months i.e. below the actual of the on an average materials holding period of the past and the same may be acceptable.

	2008 [Estimated]	2009 [Projected]
Work in Process	7.570	9.882
Months’ Consumption	0.33	0.33

WIP in the business was remaining at the level of about 15 days on an average. Since half of the sale is expected to come through job work to be got done the WIP will be expected to come down to the level of 0.33 months level in the year 2007-08 and 2008-09 this may be found reasonable.

Finished goods inventory has been remaining nearly to the NIL level as goods once got ready are billed and dispatched, the finished goods inventory has been expected / projected to remain at very negligible level hence holding level has not been taken into consideration while working out assessment.

Receivables / Debtors

	2008 [Estimated]	2009 [Projected]
Receivables – Domestic	55.355	68.538
Months’ Consumption	3.00	3.00

Receivable of domestic sales are remaining at the level of nearly at the level of 4.00 months on an average as per the credit terms allowed in the business of this nature. This credit period has bee estimated / projected to remain at the level of 3.00 months in the year 2007-08 and 2008-09. The same may be acceptable as the they are below the actual levels of the past

	2008 [Estimated]	2009 [Projected]
Receivables – Exports	20.347	30.282
Months’ Consumption	3.00	3.00

The exports realizations are coming through the bank accounts directed and it may have been observed that after the bills are submitted to the bank for negotiation period of about 4 months has been taken till the realizations were received in the account from the exports sales.

While working out the assessment for the years 2007-08 and 2008-09 the company has taken holding period of 3.00 months sales which may be found at acceptable level.

Other current assets were of Rs. 7.592 millions as on 31.03.2007 are expected to remain at Rs. 5.625 Millions as on 31.03.2008 the reduction in the other current assets are estimated as land advance of Rs. 4.213 Millions outstanding as on 31.03.2007 has now converted into fixed assets as explained earlier, the other current assets will reduce to that extent and fixed assets block will increase as on 31.03.2008.

Sundry Creditors

	2008 [Estimated]	2009 [Projected]
Creditors – General	15.364	19.705
Months’ Consumption	0.68	0.67

Sundry creditors as on 31.03.2007 had at the level of 1.21 months as to meet the increase working capital requirement for rise in sales / turnover was not available from the banking system therefore the company has to resort to enhanced credit period from the suppliers in spite of the fact that interest burden will be slightly more for the market credit.

This level is expected / projected to come down to the level of about 20 days in view of the fact that the enhanced working capital will help to reduce the domestic creditors level and ultimately help to improve the profitability.

	2008 [Estimated]	2009 [Projected]
Creditors – L/C	20.000	25.000
Months’ Consumption	3.00	3.00

For import purchases the company is resorting to supply of raw materials through bank L/C limit which has credit period of 90 days and the additional requirement of the L/C limit was fulfilled by adhoc rise in the L/C limit. The same level of holding level of 3.00 months has been taken for the year 2007-08 and 2008-09.

Based on above assumption on the estimated sales of Rs. 291.794 millions for the year 2007-08 and projected sales of Rs. 381.641 millions for the year 2008-09 the MPBF of Rs. 55.000 Millions for the year 2007-08 and MPBF of Rs. 75 Millions for the year 2008-09 has been assessed. Since the year 2007-08 will be ending shortly, the company request for making available working capital credit limits as per assessment data submitted for the year 2008-09.

Contingent Liabilities [As On 31.03.2007]

There a disputed income tax demand of Rs. 1.813 Millions including interest and penalty against which the company had filed application before CIT – [A], Thane. Out of the disputed income tax demand, the Company had made the payment of Rs. 0.136 Million during the year. Based on the legal opinion obtained from various Accountants, Legal Consultants, the Company does not expect any liability on this account.

FIXED ASSETS

• Leasehold Land
• Building
• Plant and Machinery
• Electric Installations
• Lab Equipments
• Furniture and Fixtures
• Computer
• Office Equipments
• Car

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.39.94
UK Pound	1	Rs.78.81
Euro	1	Rs.63.05

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--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		63

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