MIRA INFORM REPORT

Report Date :

27.06.2008

IDENTIFICATION DETAILS

Name :	SHANGHI POLYMERS PRIVATE LIMITED
Registered Office :	Sanghi Nagar, P. O. Hayatnagar Mandal, Ranga Reddy, Hyderabad – 501511, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2007
Date of Incorporation :	21.05.1997
Com. Reg. No.:	01-27150
CIN No.: [Company Identification No.]	U24134AP1997PTC027150
TAN No.: [Tax Deduction & Collection Account No.]	HYDS08399G
PAN No.: [Permanent Account No.]	AAHCS0916P
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Exporter and Importer of Insulation Tapes and Leather Cloth.

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Poor
Payment Behaviour :	Delayed
Litigation :	Unknown
Comments :	Subject is a part of Sanghi Group which faces difficult times. Subject also has huge accumulated losses and it’s paid up capital. Net worth has been wiped out. Its payments are delayed. The company can be considered for any business dealings on safe and secured trade terms and conditions, only.

INFORMATION PARTED BY

Name :	Mrs. Usha
Designation :	Accounts Officer
Contact No.:	91-9347299865
Date :	24.06.2008

LOCATIONS

Registered Office/ Factory :	Sanghi Nagar, P. O. Hayatnagar Mandal, Ranga Reddy, Hyderabad – 501511, Andhra Pradesh, India
Tel. No.:	91-40-24756661/ 62/ 63/ 64
Fax No.:	91-40-24756755
E-Mail :	info@sanghimail.com info@sanghicement.com
Location :	Owned

DIRECTORS

Name :	Mr. Ravi Sanghi
Designation :	Director
Address :	Sanghi Nagar, P. O. Hayat Nagar Mandal, Ranga Reddy, Hyderabad – 501511, Andhra Pradesh, India
Date of Birth/Age :	01.07.1952
Date of Appointment :	21.05.1997
Name :	Mrs. Anita Sanghi
Designation :	Director
Address :	Sanghi Nagar, P. O. Hayat Nagar Mandal, Ranga Reddy, Hyderabad – 501511, Andhra Pradesh, India
Date of Birth/Age :	31.12.1954
Date of Appointment :	16.06.1998
Name :	Mr. Sudhir Sanghi
Designation :	Director
Address :	4-3-352, Bank Street, Koti, Hyderabad – 500095, Andhra Pradesh, India
Date of Birth/Age :	15.12.1950
Date of Appointment :	21.05.1997
Name :	Mrs. Ekta Sanghi
Designation :	Director
Address :	Sanghi Nagar, P. O. Hayat Nagar Mandal, Ranga Reddy, Hyderabad – 501511, Andhra Pradesh, India
Date of Birth/Age :	10.12.1979
Date of Appointment :	01.01.2003
Name :	Mr. Alok Sanghi
Designation :	Additional Director
Address :	1-144, Omerkhan Daira, Sanghinagar, Ranga Reddy, Hyderbad – 501511, Andhra Pradesh, India
Date of Birth/Age :	13.01.1984
Date of Appointment :	01.05.2008
Name :	Mr. Aditya Sanghi
Designation :	Additional Director
Address :	1-144, Omerkhan Daira, Sanghinagar, Ranga Reddy, Hyderbad – 501511, Andhra Pradesh, India
Date of Birth/Age :	13.09.1982
Date of Appointment :	01.05.2008
Name :	Mr. Gireesh Kumar Sanghi
Designation :	Additional Director
Address :	1-144, Omerkhan Daira, Sanghinagar, Ranga Reddy, Hyderbad – 501511, Andhra Pradesh, India
Date of Birth/Age :	08.03.1955
Date of Appointment :	01.05.2008
Name :	Mr. Rajgopal Vishwanath
Designation :	Additional Director
Address :	No.48, Ramasamy Salai, K K Nagar, Chennai – 600078, Tamilnadu, India
Date of Birth/Age :	30.11.1946
Date of Appointment :	01.05.2008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 30.09.2004)

Names of Shareholders	No. of Shares
Mr. Ravi Sanghi	5000
Mr. Sudhir Sanghi	10
Mrs. Anita Sanghi	4990
Total	10000

BUSINESS DETAILS

Line of Business :	Manufacturer, Exporter and Importer of Insulation Tapes and Leather Cloth.
Products :	Insulation Tapes Leather Cloth
Exports :
Products :	All Products
Countries :	Indonesia Bangladesh Dubai
Imports :
Products :	Bopp Films
Countries :	Singapore Malaysia
Terms :
Selling :	Credit (30 days)
Purchasing :	Credit (30 days) Advance

GENERAL INFORMATION

Customers :	Wholesalers Dealers
No. of Employees :	400
Bankers :	HDFC Bank The Laxmi Vilas Bank Limited 4-3-352, Bank Street, Koti, Hyderabad – 500095, Andhra Pradesh, India

Banking Relations :	Unknown
Auditors :
Name :	Ankit and Company Chatered Accountant
Address :	4-3-352, Bank Street, Koti, Hyderabad – 500095, Andhra Pradesh, India
Associates/Subsidiaries :	Sanghi Textiles Limited Sanghi Polysters Limited Sanghi Spinners Limited Sanghi Cements Limited Zip Fasteners Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
10000	Equity Shares	Rs.10/- each	Rs.0.100 Million

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		0.100	0.100	0.100
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(6.378	(6.462)	(6.862)
NETWORTH		(6.278)	(6.362)	(6.762)
LOAN FUNDS
1] Secured Loans		18.396	0.000	0.000
2] Unsecured Loans		211.232	149.728	127.027
TOTAL BORROWING		229.628	149.728	127.027
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		223.350	143.366	120.265
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		24.864	26.080	26.678
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		126.102	126.101	39.152
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	21.822	34.924	31.514
	Sundry Debtors	49.991	51.659	61.201
	Cash & Bank Balances	0.106	0.531	0.177
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	40.306	18.215	14.605
Total Current Assets		112.225	105.329	107.497
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	47.283	121.585	60.504
	Provisions	0.000	0.000	0.000
Total Current Liabilities		47.283	121.585	60.504
Net Current Assets		64.942	(16.257)	46.993
MISCELLANEOUS EXPENSES		7.442	7.442	7.442
TOTAL		223.350	143.366	120.265

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
Sales Turnover		260.593	308.658	308.887
Other Income		0.020	0.204	0.140
Total Income		260.613	308.862	309.027
Profit/(Loss) Before Tax		0.092	0.400	0.832
Provision for Taxation		0.000	0.000	0.000
Profit/(Loss) After Tax		0.092	0.400	0.832
Expenditures :
	Financial Charge	1.226	3.545	2.793
	Depreciation & Amortization	1.124	1.221	0.884
	Other Expenditure	258.171	303.696	304.518
Total Expenditure		260.521	308.462	308.195

KEY RATIOS

PARTICULARS		31.03.2007	31.03.2006	31.03.2005
PAT / Total Income	(%)	0.03	0.13	0.27
Net Profit Margin (PBT/Sales)	(%)	0.03	0.13	0.27
Return on Total Assets (PBT/Total Assets}	(%)	0.07	0.30	0.62
Return on Investment (ROI) (PBT/Networth)		(0.01)	(0.06)	(0.12)
Debt Equity Ratio (Total Liability/Networth)		(44.11)	(42.64)	(27.73)
Current Ratio (Current Asset/Current Liability)		2.37	0.87	0.78

LOCAL AGENCY FURTHER INFORMATION

Form 8:

Corporate identity number of the company	U24134AP1997PTC027150
Name of the company	SHANGHI POLYMERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Sanghi Nagar, P. O. Hayatnagar Mandal, Ranga Reddy, Hyderabad – 501511, Andhra Pradesh, India
This form is for	Creation of Charge
Type of charge	Hypothecation
Particular of charge holder	The Laxmi Vilas Bank Limited 4-3-352, Bank Street, Koti, Hyderabad – 500095, Andhra Pradesh, India hyd@lvbank.com
Nature of instrument creating charge	Letter of Hypothecation Dated 22, July 2006
Date of instrument Creating the charge	22.07.2006
Amount secured by the charge	Rs.19.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	On OCC Limit of Rs.15.500 Millions, Margin is 25% and Interests is BPLR – 0.50% (PER: 12.50 % P.a. Payable at Monthly Rests. For ILC/ FLC FO Rs.4.000 Millions, Margin is 10% and Interests / Exchange is as per Circular.
Particulars of the property charged	Stock in Trade Book Debts Hypothecation of Stock of Raw Materials and Finished Goods of Resin Cloth, Rigid/ Semi Rigid PVC Film Sheeting, Insulation Tapes.
Particulars of the present modification	NA

Profile:

Subject under its umbrella nurtures three divisions: Leather, Tapes and PVC Films.

Leather Division: it is the largest integrated manufacturer of PVC products ranging from leather for luggage, tarpaulin sheets and shoe uppers to films and sheetings under the brand name “Classic”.

Tape Division: It houses a versatile manufacturing division of wide range of BOPP self adhesive and PVC electrical insulation tapes under the brand “Miracle” and “Wonder”.

Rigid & Semi Rigid PVC Films: This division is equipped with the most modern rigid film calendars which are totally automated to manufacture both clear and transparent and opaque PVC films.

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.42.73
UK Pound	1	Rs.84.38
Euro	1	Rs.66.97

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	-
OPERATING SCALE	1~10	1
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	1
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	-
--LEVERAGE	1~10	-
--RESERVES	1~10	-
--CREDIT LINES	1~10	1
--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	NO
TOTAL		8

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