MIRA INFORM REPORT

Report Date :

27.02.2008

IDENTIFICATION DETAILS

Name :	CREATIVE POLYMERS PRIVATE LIMITED
Registered Office :	56 A, Giriraj Industrial Estate, Mahakali Caves Road, Andheri (East), Mumbai – 400 069, Maharashtra
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	27.12.1980
Com. Reg. No.:	11-23610
CIN No.: [Company Identification No.]	U17120MH1980PTC023610
TAN No.: [Tax Deduction & Collection Account No.]	MUMC11549G
PAN No.: [Permanent Account No.]	AAACC1948E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Marketers of Industrial Finished Synthetic Coatings, Paints, Enamels, Varnishes and Thinners.

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 230000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well – established and reputed company having fine track records. Trade relations are fair. Business is active. General financial position is satisfactory. Fundamentals are strong and healthy. Payments are reported as usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	56 A, Giriraj Industrial Estate, Mahakali Caves Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Tel. No.:	91-22-26820852 / 28324770
E-Mail :	colorbondmum@gmail.com colorbonmum@gmail.com
Administrative Office :	B -1, STC Society, N S Phadke Road, Andheri (East), Mumbai – 400 069, Maharashtra, India
Factory :	S-173, MIDC, Bhosari, Pune -411 026, Maharashtra, India

DIRECTORS

Name :	Mr. Sriniwas Bajirao Sardesai
Designation :	Director
Address :	7/8, Ashok Co-Operative Housing Society, Ashok Nagar, Pune – 411 007, Maharashtra, India
Date of Birth/Age :	07.09.1947
Date of Appointment :	01.11.1989
Name :	Mr. Shrikant Nagesh Aklujkar
Designation :	Director
Address :	22/22, Juhu Co-operative Housing Society , anrtacruz (West), mu8mbai – 400 054, Maharashtra, India
Date of Birth/Age :	04.02.1944
Date of Appointment :	12.09.1983
Name :	Mr. Pramod Dattaray Pardhy
Designation :	Director
Address :	5, Meghmalhar Apartments, Lokmanya Colony, Kothrud, Pune – 411 038, Maharashtra, India
Date of Birth/Age :	19.07.1952
Date of Appointment :	01.06.2005
Name :	Mr. P. M. Gupte
Designation :	Director

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders		No. of Shares
Mr. Vishwas Vasant Ghotge		3500
Mr. Vishwas V Ghotge		18000
Mrs. Supriya V Ghotge		1000
Mr. Rohan V Ghotge		2500
Mr. Ajit N Khot		10000
Mr. Jagdish M Nadkarni		27600
Mrs. Jayashree J Nadkarni		2400
Mr. Shrikant N Aklujkar		10000
Mr. Srinivas B Sardesai		10000
Mr. Pramod D Pardhy		4000
Mr. Neeraj P Pardhy		1000
M/S Aggressive Investment		10000
	Total	100000

Equity Shares Breakup (Percentage of Total Equity):

Sr No.	Category	Percentage
1	Bodies corporate	10.00
2	Directors or relative of directors	25.00
3	Other top fifty (50) shareholders	65.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers and Marketers of Industrial Finished Synthetic Coatings, Paints, Enamels, Varnishes and Thinners.
Products:	· Industrial Finished Synthetic Coatings Paints, · Enamels Varnishes · Thinners

PRODUCTION STATUS (31.03.2004):

Particulars	Unit	Installed Capacity	Actual Production
Industrial Finished Synthetic Coatings, Paints, Enamels Varnishes, Thinners	Kilolitres	2.5 per day	894.10

GENERAL INFORMATION

No. of Employees :	Around 90
Bankers :	v State Bank of India Commercial Branch, Vile Parle (East) Mumbai Maharashtra v Industrial Finance Branch Pune Mumbai Road, Pune Maharashtra v Citi Bank NA
Banking Relations :	Satisfactory
Auditors :
Name 1 :	Yeolekar and Associates Chartered Accountants
Address :	3, Laxminvas , Subhash Road B, Near National Plastics, Vile Parle (East), Mumbai – 400 057, Maharashtra, India
Name 2 :	Mr. A K Dhere Chartered Accountants
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
250000	Equity Shares	Rs. 10/- each	Rs. 2.500 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
100000	Equity Shares	Rs. 10/- each	Rs. 1.000 million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		1.000	1.000
2] Share Application Money		0.000	0.000
3] Reserves & Surplus		56.180	45.817
4] (Accumulated Losses)		0.000	0.000
NETWORTH		57.180	46.817
LOAN FUNDS
1] Secured Loans		3.199	0.000
2] Unsecured Loans		0.000	0.000
TOTAL BORROWING		3.199	0.000
DEFERRED TAX LIABILITIES		0.675	0.532
TOTAL		61.054	47.349
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.993	6.356
Capital work-in-progress		0.000	0.000
INVESTMENT		0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.036	16.559
	Sundry Debtors	16.515	22.822
	Cash & Bank Balances	23.333	12.332
	Other Current Assets	0.000	0.000
	Loans & Advances	17.921	19.827
Total Current Assets		73.805	71.540
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	5.802	12.356
	Provisions	15.942	18.191
Total Current Liabilities		21.744	30.547
Net Current Assets		52.061	40.993
MISCELLANEOUS EXPENSES		0.000	0.000
TOTAL		61.054	47.349

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006
Sales Turnover [Including Other Income]		152.849	121.940
Profit/(Loss) Before Tax		16.897	13.759
Provision for Taxation		--	--
Profit/(Loss) After Tax		16.897	13.759
Expenditures :
	Depreciation & Amortization	0.977	0.893
	Other Expenditure	134.975	107.288
Total Expenditure		135.952	108.181

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006
PAT / Total Income	(%)	11.05	11.28
Net Profit Margin (PBT/Sales)	(%)	11.05	11.28
Return on Total Assets (PBT/Total Assets}	(%)	20.41	17.66
Return on Investment (ROI) (PBT/Networth)		0.30	0.29
Debt Equity Ratio (Total Liability/Networth)		0.44	0.65
Current Ratio (Current Asset/Current Liability)		3.39	2.34

LOCAL AGENCY FURTHER INFORMATION

FORM 8:-

Name of the company	CREATIVE POLYMERS PRIVATE LIMITED - ITOCHU
Presented By	State Bank of India, Vile Parle (East) Branch, Mumbai 400 057, Maharashtra, India
1) Date and description of instrument creating the change	General Agreement for the grant of Medium Term Advances to Small Scale Industries and Hypothecation of movables, book debts and other assets dated 21.09.1994
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 1.900 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 present and future goods book debts movables and other assets of the borrower including document of title to goods and other assets such as outstanding moneys, receivables , claims, bills, invoices, documents, contract, engagement, securities, investment, right and assets and present and all future machinery.
4) Gist of the terms and conditions and extent and operation of the charge.	ROI :- 1.25% above SBAR Minimum 16.25% p.a
5) Name and Address and description of the person entitled to the charge.	State Bank of India Vile Parle (East) Branch, Mumbai – 57
6) Date and brief description of instrument modifying the charge	Supplemental General Agreement for the grant of Medium Term Advances to Small Scale Industries of Hypothecation of movables book debts and other assets Ancillary Agreement ‘A’ Ancillary Agreement ‘B’ All the above agreement are dated 02.09.1996 and executed for the creation of a single modifications.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The original charge was Rs. 1.900 millions Now by the present modification dated 02.09.1996 the limit increased by Rs. 4.100 millions making total to Rs. 6.000 millions.

Name of the company	CREATIVE POLYMERS PRIVATE LIMITED - ITOCHU
Presented By	State Bank of India, Vile Parle (East) Branch, Mumbai 400 057, Maharashtra, India
1) Date and description of instrument creating the change	General Agreement for the grant of small Industrial advances and hypothecation of movables book debts and other assets dated 29.07.1987 Ancillary Agreement No. 1 dated 29.07.1987 Ancillary Agreement No. 3 dated 29.07.1987 Guarantee Agreement dated 29.07.1987 All agreement creates a single charges.
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 0.050 million
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 present and future goods book debts movables and other assets including documents of title to goods such as Outstanding Moneys, Receivables, Claims, Bills, Invoices, Contract, Engagement, Securities. Investment, Rights And Assets and Present Machinery.
4) Gist of the terms and conditions and extent and operation of the charge.	ROI :- 1% below SBAR Minimum 15.5% p.a
5) Name and Address and description of the person entitled to the charge.	State Bank of India Address: Vile Parle (East) Branch, Bombay - 57
6) Date and brief description of instrument modifying the charge	Supplemental General Agreement dated 03.03.1993 Ancillary Agreement No. 1 dated 03.03.1993 Ancillary Agreement No. 3 dated 03.03.1993 Guarantee Agreement dated 03.03.1993 All agreement creates a single modification.
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.	The original charge was created on 29.07.1987 for Rs. 0.250 millions modified on 24.11.1988 for Rs. 1.800 millions further modified on 20.09.1990 for Rs. 2.500 millions. Now by this present modification dated 03.03.1993. The limit increased by Rs. 1.500 millions. Making total limit to Rs. 4.000 millions and Rate of interest is 2% over SBAR with minimum 20.75% p.a Interest tax effective rate 20.75% p.a.

FIXED ASSETS:

· Land

· Plant and Machinery

· Furniture and Fixtures

· Electrical Installations

· Office Equipments

· Rand D Equipments

· Vehicles

· Land and Factory

· Buildings

· Airconditioners

· Refrigerators

· Water Coolers

· EPBX

· Computers

· Printer

OTHER INFORMATION:

Product Development:-

The Company’s heavy dependence on Electronics Industry and it’s growth though justified so far, needs to be reviewed and development of other value added products like Pus, Epoxies, TSAs should be given priority in the coming year. The Company has decided to concentrate on wood working and white goods industry for product and market development.

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.39.91
UK Pound	1	Rs.78.44
Euro	1	Rs.59.13

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