MIRA INFORM REPORT

 

 

 

Report Date :

15.07.2008

 

IDENTIFICATION DETAILS

 

Name :

SHAH POLYMERS

 

 

Registered Office :

No. 1, MSR Industrial Estate, Gokula, Bangalore – 560 054, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Year of Establishment :

1985

 

 

IEC No.:

07880022360

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRS15790F

 

 

PAN No.:

[Permanent Account No.]

AAFFS4437A

 

 

Legal Form :

Subject is a partnership concern with an unlimited liability of the partners.

 

 

Line of Business :

Traders, Dealers, Distributors and Importer of Engineering Plastics, Raw Materials, Polycarbonate Sheets, Advertising Materials, Vinyls Banners, Flex, etc.

 

 

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 250000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established concern having fine track. Partners are reported as experienced, respectable and resourceful businessmen.

 

Their trade relations are fair. Payments are concern are correct and  as per commitments.

 

The concern can be considered good for any normal business dealings at usual trade terms and conditions.

 

 

INFORMATION PARTED BY

 

Name :

Mr. Vishwanath

Designation :

Account Manager

Contact No.:

91-9986024360

Date :

30.06.2008

 

 

LOCATIONS

 

Registered Office :

No. 1, MSR Industrial Estate, Gokula, Bangalore – 560 054, Karnataka, India

Tel. No.:

91-80-23608924/25/26/27/28

Fax No.:

91-80-23603905

E-Mail :

business@shahpolymers.com

Website :

http://www.shahpolymers.com

Area :

5000 sq.ft.

Location :

Rented

 

 

Branch 1:

No.3/I, Tannery Street, Cantonment, Pailavaram, Chennai – 600 043, Tamilnadu, India 

Tel. No.:

91-44-22641973/22641103

Area :

5000 sq.ft.

Location :

Rented

 

 

Branch 2:

No.1, Vivek Industrial Estate, Walbhat Lane, Behind Nirlon, Goregaon (East), Mumbai – 400 063, Maharashtra, India

Tel. No.:

91-22-39461154

Area :

4000 sq. ft.

Location :

Rented

 

 

Branch 3:

No.14, A/7 WEA China  market, Kari Bash, New Delhi-110005

Tel no.:

91-11-25862119

Area :

2000 sq. ft.

Location :

Rented

 

 

Godown :

ACC Industrial Shed, No.21/3, 4th Main, 1st Cross, Yeshwanthpur, Bangalore, Karnataka, India

 

 

Tel. No.:

91-80-40063000

Fax No. :

91-80-23603905

Area :

5000 Sq. ft.

 

 

PARTNERS

 

Name :

Mr. Mukesh Shah

Designation :

Partner

Address :

Bangalore, Karnataka, India

Date of Birth/Age :

02.10.1964

Qualification :

BBM

Experience :

22 Years

 

 

Name :

Mr. Deepak Shah

Designation :

Partner

Address :

Bangalore, Karnataka, India

Date of Birth/Age :

04.09.1966

Qualification :

B.Com

Experience :

18 years

 

 

Name :

Mr. Shashikath Shah

Designation :

Partner

Address :

1st Block, Bangalore, Karnataka, India

Date of Birth/Age :

03.11.1941

Experience :

22 Years

 

 

Name :

Mrs. Indira Shah

Designation :

Partner

Address :

RMV 2nd Stage, Bangalore, Karnataka, India

Date of Birth/Age :

01.12.1945

Experience :

5 Years

 

 

Name :

Mrs. Neeta Shah

Designation :

Partner

Address :

Bangalore – 560 094, Karnataka, India

Date of Birth/Age :

16.10.1966

Experience :

5 Years

 

 

Name :

Mrs. Divya Shah

Designation :

Partner

Address :

Karnataka, India

Date of Birth/Age :

02.08.1967

Experience :

5 Years

 

           

BUSINESS DETAILS

 

Line of Business :

Traders, Dealers, Distributors and Importer of Engineering Plastics, Raw Materials, Polycarbonate Sheets, Advertising Materials, Vinyls Banners, Flex, etc.

 

 

Products :

·         Titeron , Taiwan

·         LG Chem Polymers

·         Reliance Industrial Polymers

·         Advertising Material

·         Structured Products

 

 

Agencies Held :

Plastiblends (India) Limited

 

 

Exports :

 

Products :

All Products

Countries :

South Africa

 

 

Imports :

 

Products :

LG Tileron Enterprises

Countries :

·         Korea

·         Taiwan

·         sometimes Singapore

 

 

Terms :

 

Selling :

Credit – 30 days

 

 

Purchasing :

L/C – 90

 

 

GENERAL INFORMATION

 

Customers :

·         Wholesalers

·         Retailers

·         End Users

 

 

No. of Employees :

55 (In Office 25 and In Branch 30)

 

 

Bankers :

Standard Chartered Bank

M G Road, Bangalore, Karnataka, India

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Patel Mohan Ramesh and Company

Chartered Accountants

Address :

No.8, AM Road, II Floor, Journalist Colony, Bangalore – 560 002, Karnataka, India

Tel. No.:

91-80-26704298 / 26709331

Fax No.:

91-80-26704296

E-Mail :

sai_shyam@vsnl.com

 

 

Sister Concerns :

 Shah Polymers

No.1, Gokula MSR, Industrial Area, Bangalore – 560 054, Karnataka, India

Line of Business: Trading

 

 

CAPITAL STRUCTURE

 

Capital Investment :

 

Owned :

Rs. 50.622 millions

Borrowed :

Nil

Total :

Rs. 50.622 millions

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

 

31.03.2007

SHAREHOLDERS FUNDS

 

 

 

1] Partners Capital

 

 

50.622

2] Share Application Money

 

 

0.000

3] Reserves & Surplus

 

 

0.000

4] (Accumulated Losses)

 

 

0.000

NETWORTH

 

 

50.622

LOAN FUNDS

 

 

 

1] Secured Loans

 

 

3.737

2] Unsecured Loans

 

 

10.577

TOTAL BORROWING

 

 

14.314

DEFERRED TAX LIABILITIES

 

 

0.000

Bank OCC Account

 

 

34.723

Branch/ Division

n       n       Bangalore

n       n       Chennai

n       n       Mumbai

 

 

 

10.869

21.197

0.911

 

 

 

32.977

 

 

 

 

TOTAL

 

 

132.636

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

 

6.888

Capital work-in-progress

 

 

0.000

 

 

 

 

INVESTMENT

 

 

0.700

DEFERREX TAX ASSETS

 

 

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

 

42.140

 

Sundry Debtors
 

 

73.854

 

Cash & Bank Balances
 

 

2.726

 

Other Current Assets
 

 

17.630

 

Loans & Advances
 

 

26.696

Total Current Assets
 

 

163.046

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

 

70.954

 

Provisions
 

 

0.120

Total Current Liabilities
 

 

71.074

Net Current Assets
 

 

91.972

 

 

 

 

Branch/ Division

n       n       Bangalore

n       n       Chennai

n       n       Mumbai

n       n       Pune

 

 

 

19.781

0.020

9.170

4.006

 

 

 

32.977

 

 

 

 

MISCELLANEOUS EXPENSES

 

 

0.099

 

 

 

 

TOTAL

 

 

132.636

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2008

 (Around)

31.03.2007

Sales Turnover

 

570.000 

355.437

Other Income

 

 

0.000

Total Income

 

 

355.437

 

 

 

 

Profit/(Loss) Before Tax

 

 

2.191

Provision for Taxation

 

 

0.000

Profit/(Loss) After Tax

 

 

2.191

 

 

 

 

Expenditures :

 

 

 

 

Administrative Expenses

 

 

14.308

 

Financial Expenses

 

 

6.053

 

Selling Expenses

 

 

14.191

 

Managerial Remuneration

 

 

1.000

 

Interest

 

 

2.888

 

Depreciation & Amortization

 

 

1.306

 

Other Expenditure

 

 

314.000

Total Expenditure

 

 

353.746

 

Expected Sales (2008-09) : Around Rs.650.000 millions

 

KEY RATIOS

 

PARTICULARS

 

 

 

 

31.03.2007

PAT / Total Income

(%)
 

 

0.61

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

 

0.61

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

 

1.07

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

 

0.04

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

 

4.02

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

 

2.29

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Trustseal Acceptance Chart

 

Parameters

Details

 

 

Existence Verification

 

Name

SHAH POLYMERS

Address

No. 1, Gokula MSR, Industrial Estate, , Bangalore – 560 054, Karnataka, India

Phone/ Mobile Numbers

91-80-40063000

Fax Numbers

91-80-23603905

 

 

Statutory Approvals

 

Legal Status of Firm

Registered

Income Tax Registration

AAFFS4437A

Central Sales Tax Registration

90750330 dated 14-11-1985

State Sales Tax Registration

TIN: 29970051422

Service Tax Registration

AAFFS4437A ST001

VAT/ TIN Registration

TIN: 29970051422

Excise Registration

AAFFS4437AX0001

Import Export Code

07880022360

Name of Bank

Standard Chartered Bank

Current Account Number

456-0-508152-3

Account Since

Sept – 2007

Emp PF Reg Number

KN/19343

Company ESI Reg. Number

53-14257-101

 

It is in trade terms with:

 

·         G. E. Plastics

·         Indian Petrochemicals Corporation Limited

·         Reliance Industries Limited

·         L. G. Chemicals Limited

·         Electronic Research India Limited, Bangalore, Karnataka, India

·         Copper Bossmann, Chennai, Tamilnadu, India

 

The concern is booking orders on commission.

 

Subject was made its humble beginning in the year 1986 founded by the family of Mr. Shashikant Shah, Mr. Mukesh Shah and Mr. Deepak Shah.

 

The concern is engaged as distributors/agents/dealers for various reputed companies like Plastics, Reliance Industries, LG Chem and IPCL.

 

AS PER WEB:

 

Accolades

                                                                                                                             

·         Awarded the largest selling agent in India for G E Plastics in 1993, 1994, 1996 and 1998, 2000

·         Awarded the largest selling Polycarbonate sheets agent (GE Plastics) in India – 1998

·         Awarded the second largest distributor in the country for Plastiblends India Limited in 1997 – 1998

·         Winner of the best stall in various exhibitions for Building & Construction Industry held at Bangalore, Chennai, Mumbai, Delhi                                                                                                                      

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.42.82

UK Pound

1

Rs.84.89

Euro

1

Rs.68.07

 

 

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