MIRA INFORM REPORT

Report Date :

11.10.2008

IDENTIFICATION DETAILS

Name :	M. H. POLYMERS PRIVATE LIMITED
Registered Office :	5267, Kucha Rehman, Chandni Chowk, Delhi – 110 006
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	29.12.1988
Com. Reg. No.:	55-34437
CIN No.: [Company Identification No.]	U74899DL1988PTC034437
IEC No.:	0589003542 [Date : 27.04.1989]
TAN No.: [Tax Deduction & Collection Account No.]	DELM04623D
PAN No.: [Permanent Account No.]	AAACM0826B
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturing and Marketing of Flexible Polyurethane Foam (PU Foam) and trading of Cotton Cloth

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are 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 :	Mr. S M Sajid
Designation :	Director
Contact No.:	91-9810063768
Date :	30.08.2008

LOCATIONS

Registered Office :	5267, Kucha Rehman, Chandni Chowk, Delhi – 110 006, India
Tel. No.:	91-11-23926851 / 22941799 / 23940465 / (Resi.) 23923406 / 23931895
Mobile No.:	91-98100 63868
Fax No.:	91-11-23926851 / 23941798 / 23940465
E-Mail :	indec@del3.vsnl.net.in info@mhpolymers.com khanmf@gmail.com
Website :	http://www.mhpolymers.com
Area :	1200 sq. ft.
Location :	Owned
Factory 1 :	B-15, B-14, E-115, Site B, Surajpur Industrial Area, Tehsil Dadri, Dist. Gautam Budh Nagar, Greater Noida, Uttar Pradesh, India
Tel. No.:	91-120-2569543 / 2560488
Fax No.:	91-120-2569543 / 2560488
Area :	280000 Sq. Mtrs.
Location :	Owned
Branch / Factory 2:	M. H. House, D – 2/A, Abdul Fazal Enclave, Thokar No. 3, Jamia Nagar, Okhla, New Delhi – 110 025, India
Area :	1800 Sq. ft.
Location :	Owned
Branch Office :	Friend Colony, New Delhi

DIRECTORS

Name :	Mr. Mohd. Shakeel
Designation :	Director
Address :	2388, Kothi Nawab Luharu, Ballimaram, Delhi – 110006
Date of Birth/Age :	01.03.1957
Qualification :	Post Graduate
Experience :	28 Years
Date of Appointment :	01.04.2006
PAN No.:	AALPS3494F
Name :	Mr. Mohd. Sajid
Designation :	Director
Address :	2388, Kothi Nawab Luharu, Ballimaram, Delhi – 110006
Date of Birth/Age :	30.08.1959
Qualification :	Graduate
Experience :	28 Years
Date of Appointment :	08.04.2003
PAN No.:	AALPS3495E
Name :	Mr. Mohd Khalid
Designation :	Director
Address :	2388, Kothi Nawab Luharu, Ballimaram, Delhi – 110006
Date of Birth/Age :	02.03.1967
Qualification :	Graduate
Experience :	20 Years
Date of Appointment :	01.04.2006
PAN No.:	AAVPM3513F

MAJOR SHAREHOLDERS

(As on 29.09.2005)

Names of Shareholders	No. of Shares
Mr. Mohd Shakil Hanif	64237
Mr. Mohd. Sajid Hanif	64237
Mr. Mohd. Khalid Hanif	64237
Mr. Mohd. Umar Shakil	10010
Mr. Tuba Sajid	10
Mr. Mohd. Nahid Shakil	50010
Mrs. Mohd. Huma Sajid	50010
Mr. Mohd. Osama Shakil	10010
Mr. Mohd. Wasif Sajid	10010
Supermax Fincap Private Limited	100000
Mr. Anjum Kausar	50000
Total	472771

Equity shares Breakup (percentage of total equity)

(As on 30.09.2007)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing and Marketing of Flexible Polyurethane Foam (PU Foam) and trading of Cotton Cloth
Products :	Polyurethan Foam Cotton Cloth Cotted Cotton Cloth
Brand Names :	HARMONY COZY COOL SILVER AGE FRESH UP M. H. Foam Flexi Well Cozy Foam Popular Leluxe Good Dream Flexo PUF Silver Age Unique Fairy Night Sound Sleep Blue Star Star Night Klick Foam Universal Spring On Slep On Snow Cool Innova Nokia Trupati Varodhman Bajaj Foam Paras Foam
Exports :
Countries :	USA
Imports :
Products :	Chemicals
Countries :	· Spain · Singapore · Germany · Japan · Korea · Hongkong
Terms :
Selling :	Cash and Credit (30 days / 60 days)
Purchasing :	L/C and Credit (90 days)

PRODUCTION STATUS [as on 31.03.2008]

Particulars	Installed Capacity	Actual Production
Polyurethane Foam	3000 MT	3884665.000 Kgs.

GENERAL INFORMATION

Suppliers :

• Shell Eastern Petroleum Pte. Limited, Shell House, # 04-00, 83, Clemenceau, Avenue, Singapore – 239920

• BASF South East Asia Pte Limited, 7, Temasek Boulevard, # 35-01, Suntec Tower One, Singapore 038987

• Repsol Quimica S.A., Pasco De La, Castellana 280, E-28046, Madrid, Spain (Tel. No.: 34-91-3488000)

• Korea Fine Chemical Company Limited, 7^th Floor, Fine Chemical Building, 190-3, 2-KA, Choong Jung-Ro, Seodaemoonku, SEOUL, Korea

• Dow Chemical Pacific Limited, 47/F, Sun Hung Kai Centre, 30, Harbour Road, Wanchai, Hong Kong

· GE Specialty Materials [Suisse] Seirl, 7, Rue Du Pre-Bouview, CH-1217 Meyrin, Switzerland

· Shangdongda Chemical Industry, 21, Xincun East Road, Zhangdian Ditt, Zibo City, Shangdon Province, P. R. China

· GE Silicon [Singapore] Pte. Limited, 35000 South State Roite2, Frednly, WV 26146

· Bayer Materialscience Limited, 99, Queen’s Road, Central Hongkong

· TPI Polyol Company Limited, 16^th Floor, TPI Tower, 26/56 Chan tat Mai Road, Thungmahamek, Sathorn, Bangkok 10120, Thailand

Name of the Customers and their contact numbers	Location	Relationship [No. of years]
Shell Eastern Petroleum Pte. Limited	Singapore	15 Years
BASF South East Asia Pte Limited	Singapore	Upto 10 Years
Repsol Quimica S.A.	Spain	Upto 10 Years
Jaewon Chemical	Korea	Upto 10 Years
Korea Fine Chemical Company Limited	Korea	Upto 10 Years
GE Specialty Materials [Suisse] Seirl	Switzerland	Upto 10 Years
Dow Chemical Pacific Limited	Hongkong	Upto 10 Years
Bayer Materialscience Limited	Hongkong	Upto 18 Years

Customers :

Wholesalers and End Users

Name of the Customers and their contact numbers	Location	Relationship [No. of years]
Larex Sales Corporation	Kanpur	15 Years
Foamwala	Delhi	15 Years
Gurmukh Foam Agencies	Delhi	12 Years
H. B. Synthetics	Ghaziabad	18 Years
K. G. N. Traders	Haldwani	15 Years
Matting Centre	Gorakhpur	18 Years
Agra Foam Mirza International	Agra Noida	18 Years
Rahul Foam	Agra	10 Years
Pal Distributors	Mandi	15 Years
Rest on Coir India Limited	Delhi	15 Years
Rexine House	Meerut	18 Years
Rishabh Foam Private Limited	Delhi	15 Years
Sagar International	Jaipur	15 Years
Sahani Marketing	Jwalapur	15 Years
Saif Traders	Gorakhpur	15 Years
Sandhuja Traders	Karnal	10 Years
Shivoy Traders	Gorakhpur	18 Years
Singla Enterprises	Julana	15 Years
Spack Automobiles	Noida	18 Years
Unipack Packaging Private Limited	Noida	15 Years
Ved Foam House	Delhi	18 Years
Ved Rexine Store	Delhi	18 Years
Venus Sales Corporation	Sunam	10 Years
Wings International	Kanpur	15 Years

No. of Employees :

162 (In office 12 and In Factory 150)

Bankers :

Bombay Mercantile Co-operative Bank Limited

36, Netaji Subhas Marg, Darya Ganj, New Delhi – 110 002, India

Tel No.: 91-11-23268266 / 23270786 / 23266869

Facilities :

Nature of Credit Facility	Sanctioned Loan Amount
Bombay Mercantile Co-operative Bank Limited : Overdraft [Secured by way of hypothecation of Stock in trade and book debts and first charge of land, building, plant and machinery and other fixed assets of the company and personally guaranteed by all the directors.]	Rs. 46.526 Millions

Letter of Credit : Rs. 10.000 Millions

Banking Relations :	Satisfactory
Auditors :
Name :	Dewan P. N. Chopra and Company Chartered Accountants
Address :	H 57, Connaught Circus, New Delhi – 110008, Delhi, India
Tel. No.:	91-11-23321418 / 23325028 / 23322359 / 23320876 / 23321418
Fax No.:	91-11-23322359 / 23313246 / 24645893
Email :	dpnc@dpncindia.com / dpnccp@dencindia.com
Associates :	· Rajdhani Sales Corporation 794, Katra Bashir Ganj, Ballimaran, Chandni Chowk, Delhi – 110 006, India Trading of P.U. Foam, Coir Foam, Adhesives etc. Bombay Mercantile Co-op Bank · H. B. Synthetics III M-23, Nehru Nagar, Ambedkar Road, Ghaziabad, Uttar Pradesh, India
Group Concerns :	· INDEC Overseas Address : 793/1, Katra Bashir Ganj, Ballimaran, Chandni Chowk, Delhi – 110 006 Bankers : Bombay Mercantile Co-op Bank Activities : Traders of PU Foam · Supermax Fincap Private Limited 5182, Street Sultan Yar Khan, Ballimaran, Chandni Chowk, Delhi – 110 006, India Banker : Bank of India Activities : NBFC

CAPITAL STRUCTURE

(As on 30.09.2007)

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
472771	Equity Shares	Rs.10/- each	Rs.4.728 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		4.728	4.728	4.728
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		42.235	38.902	35.729
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		46.963	43.630	40.457
LOAN FUNDS
1] Secured Loans		46.526	30.776	21.171
2] Unsecured Loans		75.810	67.747	51.509
TOTAL BORROWING		122.336	98.523	72.680
DEFERRED TAX LIABILITIES		2.027	1.763	2.331
TOTAL		171.326	143.916	115.468
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		45.900	44.450	27.459
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.050	0.050	0.050
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	71.564	51.929	62.753
	Sundry Debtors	75.755	76.029	46.612
	Cash & Bank Balances	3.265	2.179	1.345
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	10.267	5.649	2.566
Total Current Assets		160.851	135.786	113.276
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	28.259	30.055	20.849
	Provisions	7.216	6.315	4.468
Total Current Liabilities		35.475	36.370	25.317
Net Current Assets		125.376	99.416	87.959
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		171.326	143.916	115.468

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		438.710	405.970	296.880
Other Income		1.078	0.000	0.000
Total Income		439.788	405.970	296.880
Profit/(Loss) Before Tax		5.412	4.026	3.256
Provision for Taxation		2.078	0.867	1.202
Profit/(Loss) After Tax		3.334	3.159	2.054
Imports :
	Raw Materials	240.702	201.767	172.246
Total Imports		240.702	201.767	172.246
Expenditures :
	Raw Material Consumed and Manufacturing Expenses	377.940	343.441	262.770
	Payments to and Provisions for Employees	16.394	11.653	2.985
	Financial Expenses	11.545	8.894	7.217
	Administrative and Miscellaneous Expenses	4.575	4.075	2.695
	Selling Expenses	30.777	32.556	19.884
	Increase / [Decrease] in Stock	(8.394)	(0.902)	(3.543)
	Excise Duty on Opening and Closing Stock	(0.246)	0.594	0.068
	Depreciation	1.784	1.633	1.546
Total Expenditure		434.375	401.944	293.622

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	0.76	0.78	0.68
Net Profit Margin (PBT/Sales)	(%)	1.23	0.99	1.10
Return on Total Assets (PBT/Total Assets}	(%)	2.62	2.23	2.31
Return on Investment (ROI) (PBT/Networth)		0.12	0.09	0.08
Debt Equity Ratio (Total Liability/Networth)		3.36	3.09	2.42
Current Ratio (Current Asset/Current Liability)		4.53	3.73	4.47

LOCAL AGENCY FURTHER INFORMATION

BUSINESS DETAILS

Details of Fixed Assets
Land and Buildings	Rs. 35.902 Millions
Plant and Machinery	Rs. 5.133 Millions
Furniture and Fixture	Rs. 0.031 Millions
Other Asses	Rs. 4.834 Millions

PERSONAL ASSETS OF THE PROPRIETOR / PARTNERS / DIRECTORS :

Description of the Assets owned by them	Amount [Rs. In Millions]
Mr. Mohd. Shakeel	1.985
Mr. Mohd. Sajid	2.953
Mr. Mohd. Khalid	2.353

INSURANCE DETAILS

Unit’s Assets covered	Policy No. / Cover Note	Validity	Sum Assured	Risk Covered
Manufacturing of Polymers and Stocks, Super Structure, Plant and Machinery, Furniture, Fitting and Fixtures	OG-09-1101-4001-00000298	From 01.05.2008 to 30.04.2009	Rs. 106.000 Millions	Earthquake without Plinth and Foundation Terrorism Exclusion clause deleted and terrorism inclusion clause Designation of property clause Terrorism damage inclusion clause Agreed bank clause
Manufacturing of Polymers and Stocks, Super Structure, Plant and machinery, Furniture, Fitting and Fixtures	OG-09-1101-4001-00000087	From 01.05.2008 to 30.04.2009	Rs. 91.000 Millions	Burglary and Housebreaking Insurance .

Form No. 8

Corporate identity number of the company	U74899DL1988PTC034437
Name of the company	M. H. POLYMERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	5267, Kucha Rehman, Chandni Chowk, Delhi – 110 006, Delhi, India
This form is for	Modification of charge
Type of charge	· Hypothecation · Equitable mortgage or mortgage of property by depositing the title deeds
Particular of charge holder	Bombay Mercantile Co-operative Bank Limited 36, Netaji Subhas Marg, Darya Ganj, New Delhi – 110 002, India
Amount secured by the charge	Rs.28.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Overdraft limit for Rs.28.000 millions with margin 40% and interest 16.50% p.a.
Description of the property charged indicating whether it is a charged on	· Immovable properties · Stock in trade · Plant and Machinery
Particulars of the property charged	· First charge in favour of Bombay Merchantile Co-operative Bank limited by way of Hypothecation of stocks of raw material, finished goods and semi finished goods. · Collaterlly secured by factory land and building No. B-14 and B-15, Site – B, Surajpur Industrial Area, Greater Noids. · Collaterally secured by hypothecation of plant and machinery (All existing and future)
Brief description of the instrument modifying the charge under section 135	Agreement for Hypothecation of stocks dared 14.07.2006 interest @ 11 p.a. with margin of 40%`
Date of instrument modifying the charge	14.07.2006
Particulars of the present modification	Enhancement of overdraft from Rs.6.500 millions to Rs.28.000 millions against raw material, finished goods and semi finished goods.

Financial analysis

Last available financial statement

[Year ended dd/mm/yyyy]

31.03.2008

Recent summary financials

[upto a period not more than two months old]

30.09.2008

Advance Taxes Paid

Rs. 1.000 Million

Change in borrowings

No

Debtors Position

Rs. 2.112 Millions

Creditors Position

No

Stock Position [at last month end]

Rs. 95.414 Millions

Drawing Power

100 %

Any other material development

Whether the critical ratios conforms to the bench mark stipulation

Current Ratio	1.25
Debt – Equity Ratio	2.00:1
DSCR	1.50
TOL / TNW	4:1
Promoter’s Contribution	25 %

Other particulars

Rs in Millions

Months [during the current year]	Purchase	Sales
April 2008	12.340	53.930
May 2008	37.615	42.424
June 2008	25.050	40.118
July 2008	42.461	42.994
August 2008	33.473	33.697
September 2008	40.838	40.513
Documents Verified

Trade References

· M K Foam Private Limited, Delhi

· Royal Foam and Fabrics, Delhi

· Spack Automotives, Uttar Pradesh

· Foamwala – Mukul Malhotra

· Gurmukh Foam Agencies – Sohan Lal

· Lokesh Foam Sales – Lokesh Kumar Jain

· Ved Rexine Store – Pankaj Kumar Chawla

History

Subject was incorporated in the year 1988, under the companies Act 1956, having Registration Number 55-34437 and started manufacturing PU Foam in the year 1990. The Company, since then, is growing at the rate of 35% annually and increasing its market share very rapidly.

The product of the company have great acceptance in the market, The quality and the ever increasing output of the products has, in fact, made us the second largest producer of Slab Stock, Flexible P. U. Foam in the Indian P.U. Foam Industry in a short period of time.

The company started production activities in the year 1998.

Fixed Assets

· Land

· Building

· Plant and Machinery

· Office equipment

· Weighting scale

· Fire extinguishers

· Electrical installation

· Computer

· Cycle

· Scooter

· Exhaust fan

· Tools and equipments

· Car

· Mobile Phone

· Truck

The machineries owned by the company are :

· Two Complete Foaming Plant

· Four Circular Round Table Cutting Machines

· One Automatic Horizontal Cutting Machine

· Five Vertical Cutting Machines

· One Shredding Machine

· One Pillow cutting machine

· Molded foam making machine.

PROJECT REPORT

Mr. Mohd. Sajid, Mohd. Shakil and Mohd. Khalid are the Directors of M. H. Polymers Private Limited. The unit is engaged in the manufacturing of Polyurethane Foam [Flexible Foam]. The company was established in 1988. The unit consists of complete Indigenous Machineries.

Polyrethane Foam is a product; rubber – like in character; has come to stay as a necessity in the advanced technology. In Whole of Europe, U.S.A. Japan and all advanced countries of the world; polyurethane foam and its products share one of the basic and most important part in the development of both the industrial as well as consumer products in life of human living. The advance technology has exchanged and captured a very wide application in different fields such as, Defense, Household goods, Industrial Insulation, Automobile engineering, Packing, Ship building, etc., the country lags behind much in its indigenous production, whereas, the demand is on a very rapid increase.

Under the dynamic and charismatic leadership of the late Prime Minister Shri Rajiv Gandhi vast avenues for latest and sophisticated and economical technology introduction was encouraged in the common and natural interest and accordingly the company established the latest polyurethane plant of which the company possess substantial experience.

Daily new applications and developments are made on the said product to suit the various different uses. Polyurethane foam industry is supposed to be one of the most sophisticated industry involving very high technology and super machineries for the production.

MARKET PROSPECTS FOR P.U. FOAM

Market : Of late use of foam in various industries is on increase. Foam can be used in various industries, such as Furniture, Packing, Sports, Insulation, Footwear and Bags, Garments Automobile [Seats, headrests, Floor, top roof etc.] ship building, Electronics etc.

The total expected demand for foam in India per annum is 90000 Tons. At present only 43000 Tons per annum is manufactured. Thus there is a short fall of demand of 47000 Tons and again with the automobile industry undergoing revolutionary change would further create short fall in sully resulting into wider gap between demand and supply.

DETAILS OF VARIOUS USES OF FOAM AND CONSUMERS HAVE BEEN NARRATED BELOW :

1. AUTOMOBILES : In this industry the foam is used in the seat, rood top, sun visor, arm rest, head rest, door panels, meter panels, steering cover, flooring benefits, sound and temperature insulation and jerks and comforts.

2. DEFENCE : Here the foam is used in jackets, shoes and bedding which work as insulation, cushion feeling, height weight and helmets.

3. AIR CRAFT INDUSTRY : The most vital part of aircraft industry is weight saving. It is only P.U. Foam, seats can save weight and last long. The rood insulation noise and temperature is the most vital use.

4. SHIPBUILDING : All the Cargo Ships, Aircraft carriers, cargo liners and passenger, ships are insulated and furnished with P.U Foam. The laoys of the ships are also made of P.U. Foam and also is used for protection and life saving device.

5. Petrochemicals Fertilisers, Furniture, Footwear, Sports etc. are many other markets like Export Garments.

ADVANTAGES OF P.U. FOAM OVER OTHER PRODUCTS I.E. LATEX RUBBER FOAM AND RUBBERIZED COIR :

P.U. Foam is half in weight compared to latex rubber foam and others. Hence advantages in easy handling and transportation P.U. Foam is unique in structure. It is available in the thinnest sheeting’s of 2 mm thickness up to 4000 mm with both the sides even which is not possible in latex or rubberized coir sheets. P. U. Foam sheets can be laminated on textiles; PVC; leather; cloth etc. where as latex rubber and coir rubberized sheets cannot be. Beside above; several other advantages and uses P.U. Foam can be utilized.

SELLING MANAGEMENT :

The unit proposes to sell its products directly to actual users without employing any agents, moreover the directors having wide experience in production, marketing etc. can fully utilize their experience for selling their product.

The product has to be dispatched in bulk either by Railways Roadways.

RAW MATERIALS AND CONSUMABLES :

RAW MATERIALS : The basic raw materials are 100 % imported and are eligible for imports under Open General Policy. However the company has been through their own efforts substituted this need with indigenous new material. These raw materials are easily available from the reputed Indian manufacturers having their offices in India.

Polyol – Indigenous T.D.I.’ Silicone, Catalysts – Imported.

CONSUMABLES : Mainly lubricants; M. C. Thinners, Krafts paper, petroleum jelly, solvents etc. are available indigenously.

PACKING MATERIALS : Plastic films, Textiles available locally.

PRODUCT MIX AND SALES REALIZATION : The selling price of P. U. Foam per Kg. is ex – factory. The taxes, fright, etc. will be borne by the customers.

MANUFACTURING PROCESS : It is a total chemical reaction process. The basic raw materials required are mentioned above.

FOAMING PROCESS :

The flexible polyurethane foam is produced by continuous slab stock / batch foaming on low pressure machine with one shot principle by pumping the different components from their respective streams and passes through the mixers which produces a very steady and soft transverse reciprocating proper reaction of chemicals over the conveyor.

Through conveyor foam are taken care by block cutters resulting in foam blocks.

WORKING CAPITAL REQUIREMENT

The company is not able to utilize its optimum production capacity primarily due tot shortage of working capital and to carry out its business activities has been depending on loans from private parties the cost of which proves to be very expensive.

Letter of Credit - on D.A. Basis

The raw materials used by the company are primarily import based. Therefore; to maintain uninterrupted supply of raw materials for the smooth production the company has to timely procure materials. The company envisages to import raw materials worth Rs. 200.000 Millions [primary cost] during next years.

The lead time required from opening Letter of Credit till material actually received; ranges from 90-120 days as is evident from the flow chart of L/Cs;

FLOW CHART OF L/C

Opened on	Material Dispatched	Material Received on	Due Date of L/C	Amount Rs in Millions
1^st April	1^st May	1^st July	1^st August	12.500
1^st May	1^st June	1^st August	1^st September	12.500
1^st June	1^st July	1^st September	1^st October	12.500
1^st July	1^st August	1^st October	1^st November	12.500

From the facts mentioned above the company is required to open at least 4 Letter of Credits on D/A basis at any given point of time to maintain uninterrupted production.

WORKING CAPITAL REQUIREMENT

Rs in Millions

FUND BASED	165.000
NON FUND BASED	50.000
Letter of Credit – on D. A. Basis
MEANS OF FINANCE
FUND BASED
Banks’ Finance – Cash Credit / Overdraft	100.000
Promoters’ Own Resources [including internal accruals]	65.000
Total	165.000
NON FUND BASED
Margin for Letter of Credit -
Promoters’ Own Resources [including internal accruals]	5.000

STATEMENT OF WORKING CAPITAL REQUIREMENT

Rs in Millions

Particulars	31.03.2009	31.03.2010	31.03.2011
	Projected
CURRENT ASSETS
Inventories
Raw Material	43.948	36.623	37.570
Packing Material	0.300	0.400	0.500
Consumable Stores	0.050	0.075	0.100
Semi and Finished Goods	41.000	47.000	53.000
Total Inventories	85.298	84.098	91.170
Sundry Debtors	101.500	105.000	110.000
Loans and Advances	13.553	15.753	17.953
Cash in Hand and at Bank	0.300	0.300	0.300
Total [A]	200.651	205.151	219.423
CURRENT LIABILITIES
Sundry Creditors	32.900	35.500	38.100
Other Liabilities and Provisions	1.000	1.500	2.000
Total [B]	33.900	37.000	40.100
Working Capital Gap A-B	166.751	168.151	179.323
Less : Margin – 30 % of W.C.G.	50.025	50.445	53.797
Working Capital Requirement	116.726	117.706	125.526

PROJECTED PROFIT AND LOSS ACCOUNT

Rs in Millions

Particulars	31.03.2009	31.03.2010	31.03.2011
	Projected
INCOME
Sales	600.000	700.000	800.000
Less – Excise Duty and Taxes	96.000	112.000	128.000
Net Sales	504.000	588.000	672.000
Other Income	1.000	--	--
Total Receipts	505.000	588.000	672.000
Expenditure
Raw Material Consumed	428.400	499.800	571.200
Power and Fuel	1.700	1.800	1.900
Direct Labour and Wages	16.500	18.000	19.000
Consumable Stores	1.800	2.000	2.200
Repairs and Maintenance	--	--	--
Other Manufacturing Expenses	0.700	0.800	0.900
Depreciation	1.800	1.800	1.800
Add – Opening Stock of Finished Goods	36.914	41.000	47.000
	487.814	565.200	644.000
Less – Closing Stock of Finished Goods	41.000	47.000	53.000
Cost of Production	446.814	518.200	591.000
Gross Profit	58.186	69.800	81.000
Interest on Term Loan	--	--	--
Interest on Working Capital	16.800	16.800	16.800
Administrative and Miscellaneous	34.500	43.000	50.000
Profit Before Tax	6.886	10.000	14.200
Less Income Tax	2.341	3.400	4.828
Profit After Tax	4.545	6.600	9.372
Depreciation added back	1.800	1.800	1.800
Net Cash Accruals	6.345	8.400	11.172

PROJECTED BALANCE SHEET

Rs in Millions

Particulars	31.03.2009	31.03.2010	31.03.2011
	Projected
SOURCES OF FUNDS
Share Capital
Paid Up Capital	4.728	4.728	4.728
Reserve and Surplus
Share Primium	22.500	22.500	22.500
Profit and Loss A/C – Opening	20.328	24.873	31.473
Add : Net Profit	4.545	6.600	9.372
Unsecured Loans	57.000	50.000	50.000
Deferred Tax	1.800	1.800	1.800
Current Liabilities
Overdraft / Cash Credit	100.000	100.000	100.000
Sundry Creditors	32.900	35.500	38.100
Other Liabilities and provisions	1.000	1.500	2.000
	244.801	247.501	259.973
APPLICATION OF FUNDS
Fixed Assets
Gross Block	58.832	58.832	58.832
Less – Depreciation	14.732	16.532	18.332
Net Block	44.100	42.300	40.500
INVESTMENTS	0.050	0.050	0.050
CURRENT ASSETS
Stock – in Trade	85.298	84.098	91.170
Sundry Debtors	101.500	105.000	110.000
Loans and Advances	13.553	15.753	17.953
Cash in Hand and at Bank	0.300	0.300	0.300
	244.801	247.501	259.973

CASH FLOW STATEMENT

Rs in Millions

Particulars	31.03.2009	31.03.2010	31.03.2011
	Projected
A. SOURCES OF FUNDS
Profit Before Tax	6.886	10.000	14.200
Add – Interest	16.800	16.800	16.800
CASH ACCRUALS	23.686	26.800	31.000
ADD
Increase in unsecured loans	[18.809]	[7.000]
Depreciation	1.800	1.800	1.800
Increase in Bank Overdraft	53.386	0.000	0.000
Increase in Deferred Tax	0.037	0.000	0.000
Increase in Provisions	[6.739]	0.500	0.500
Increase in Sundry Creditors	4.690	2.600	2.600
	58.051	24.700	35.900
B. DISPOSITION OF FUNDS
LESS
Fixed Assets	--	--	--
Increase in Current Assets
Inventory	15.229	[1.200]	7.072
Sundry Debtors	24.856	3.500	5.000
Loans and Advances	1.488	2.200	2.200
Decrease in Long Term Loans	--	--	0.000
Interest	16.800	16.800	16.800
Taxation	2.341	3.400	4.828
	60.714	24.700	35.900
Opening Cash and Bank Balance	2.963	0.300	0.300
Cash Balance	[2.663]	--	--
Closing Cash and Bank Balance	0.300	0.300	0.300

IMPORTANT RATIOS

Rs in Millions

Particulars	31.03.2009	31.03.2010	31.03.2011
	Projected
Gross Profit Ratio	11.54	11.87	12.05
Net Profit Ratio	0.90	1.12	1.39
Current Ratio	1.50	1.50	1.57
Total Indebtness Ratio	1.86	1.65	1.43
Total Outside Liability Ratio	1.21	1.24	1.17
Stock Turnover Ratio	7.03	8.32	8.77

OPERATING STATEMENT

Rs in Millions

Particulars	31.03.2009	31.03.2010	31.03.2011
	Projected
1. Gross Sales
Sales – Export	--	--	--
Sales – Local	600.000	700.000	800.000
Total	600.000	700.000	800.000
2. Less Excise Duty	96.000	112.000	128.000
3. Net Sales [1-2]	504.000	588.000	672.000
4. % rise [+] or fall [-] in net sales as compared to previous year	1.488	1.667	1.429
5. COST OF SALES
i] Raw Materials [Including stores and other items used in the process of manufacture]
[a] Imported	428.400	499.800	571.200
[b] Indigenous	--	--	--
ia] Purchase of Finished Goods
ii] Other Spares
[a] Imported	--	--	--
[b] Indigenous	1.80	2.000	2.200
iii] Power and Fuel	1.700	1.800	1.900
iv] Direct labour	16.500	18.000	19.000
[Factory Wages and Salaries]
v] Manufacturing and Operating Expenses	0.700	0.800	0.900
vi] Depreciation	1.800	1.800	1.800
vii] SUB TOTAL [i to iv]	450.900	524.400	597.000
viii] Add : Opening Stocks – in – process	26.433	30.000	35.000
Sub Total	477.333	554.200	632.000
ix] Deduct : Closing Stock – in – Process	30.000	35.000	40.000
x] Cost of production	447.333	519.200	592.000
xi] Add : Opening Stock of finished goods	10.481	11.000	12.000
Sub – total	457.814	530.200	604.000
xii] Deduct: Closing Stock – in - finished goods	11.000	12.000	13.000
xiii] Total Cost of Sales	446.814	518.200	591.000
6. Administrative and Miscellaneous expenses	4.500	8.000	10.000
7. Selling Expenses	30.000	35.000	40.000
8. SUB – TOTAL [5+6+7]	481.314	561.200	641.000
9. Operation profit before interest [3-8]	22.686	26.800	31.000
10. Interest	16.800	16.800	16.800
11. Operating profit after interest [8-9]	5.886	10.000	14.200
12. i] Add : other non-operating income	1.000	--	--
Sub – total [Income]	1.000	--	--
ii] Deduct other non-operating expenses	--	--	--
Sub total [Expenses]	--	--	--
iii] Net of other non-operating income / expenses [11 (i)+12[ii]]	1.000	--	--
13. Profit before tax / Loss [11+ 12 (iii)]	6.886	10.000	14.200
14. Provision for taxes	2.341	3.400	4.828
15. Net profit / loss [13-14]	4.545	6.600	9.372
16 [a] Equity Dividend Paid	--	--	--
[b] Dividend Rate	--	--	--
17. Retained profit [15-16]	4.545	6.600	9.372
18. Retained profit / Net profit [%]	10.000	10.000	10.000
19. Profit Brought Forward	20.328	24.873	31.473
20. Profit Carried Forward	24.873	31.473	40.800

ANALYSIS OF BALANCE SHEET

Rs in Millions

Particulars	31.03.2009	31.03.2010	31.03.2011
	Projected
CURRENT LIABILITIES
01 Short – Term borrowings from banks [including bill purchased, discounted and excess borrowings placed on repayment basis]
I] From applicant bank	100.000	100.000	100.000
Sub Total [A]	100.000	100.000	100.000
02 Short Term Borrowings from others	--	--	--
03 Sundry creditors [Trade]	32.500	35.000	37.500
04 Advance payments from customers  / Deposits from dealers	0.400	0.500	0.600
05 Provision for tax [net of Tax paid]	--	--	--
06 Dividend and Dividend Tax payable	--	--	--
07 other statutory liabilities [due within one year]	--	--	--
08 Deposits / Installments of term loans / DPGs / debentures, etc [due within one year]	--	--	--
09 Other current liabilities and provisions [due within one year]	1.000	1.500	2.000
Sub – Total [B]	33.900	37.000	40.100
10 TERM LIABILITIES [Total of 1 to 9]	133.900	137.000	140.100
11 Debentures [not maturing within one year]	--	--	--
12 Preference Shares [Redeemable after 1 year]	--	--	--
13 Term loans [excluding installments  payable within one year]	--	--	--
14 Deferred Sales Tax / Deferred Loan Deferred Payment Credit [Excluding installments due within one year]	--	--	--
15 Term deposit [repayable after one year]	--	--	--
16 other Term Liabilities	--	--	--
17 TOTAL TERM LIABILITIES [Total of 11 to 16]	--	--	--
18 TOTAL OUTSIDE LIABILITIES [10 + 17]	133.900	137.000	140.100
NET WORTH
19 Ordinary share capital	4.728	4.728	4.728
Unsecured Loans – Directors and Shareholders	57.000	50.000	50.000
20a Share Application Money	--	--	--
20 General Reserve	22.500	22.500	22.500
21 Revaluation Reserve	--	--	--
22 Other Reserves [Excluding provisions]	1.800	1.800	1.800
23 Surplus [+] or deficit [-] in Profit and Loss Account	24.873	31.473	40.845
24 NET WORTH [19+23]	110.901	110.501	119.873
25 TOTAL LIABILITIES [18+24]	244.801	247.501	259.973
CURRENT ASSETS
26 Cash and Bank Balance	0.300	0.300	0.300
27 Investments [Other than long term investments] Government and other Trustee securities
I] Fixed deposit with Bank	--	--	--
II] Share with Co-operative Bank	0.053	0.053	0.053
28 I] Receivables other than deferred and exports [Including bills purchased and discounted by banks]	101.500	105.000	110.000
II] Export receivables [Including bills purchased / discounted by banks]	--	--	--
29 Instalments of Deferred  receivables [due within one year]	--	--	--
30 Inventory
I] Raw materials [Including stores and other items used in the process of manufacture]
Imported	43.948	36.623	37.570
Indigenous	--	--	--
II] Stock – in – process	30.000	35.000	40.000
II] Finished Goods	11.000	12.000	13.000
IV] Other consumable spares
Imported	--	--	--
Indigenous	0.050	0.075	0.100
Packing Materials	0.300	0.400	0.500
31 Advances recordable in Cash or kind	1.500	1.700	1.900
32 Advance payment of taxes [NET]
33 Excise and Sales Tax Refund
Other current assets	12.000	14.000	16.000
34 TOTAL CURRENT ASSETS [Total of 26 to 33]	200.651	205.151	219.423
FIXED ASSETS
35 Gross Block	58.832	58.832	58.832
36. Depreciation to date	14.732	16.532	18.332
37 NET BLOCK [35-36]	44.100	42.300	40.500
OTHER NON – CURRENT ASSETS
38 Investments / book / debts / advances / deposits which are not Current Assts
I] [a] Others Investments in Subsidiary	0.050	0.050	0.050
[b] Others companies / affiliates
II] Advances to suppliers of capital goods and contractors	--	--	--
III} Deferred receivables [maturity exceeding one year]	--	--	--
IV] Others	--	--	--
39 Non consumables Stores and Spares	--	--	--
40 Other non – current assets including dues from directors	--	--	--
41 TOTAL OTHER NON – CURRENT ASSETS [total of 38 to 40]	0.050	0.050	0.050
42 Intangible assets [Patents, goodwill, prelim, expenses, bad / doubtful debts Not provided for etc.]	--	--	--
43 TOTAL ASSETS [Total of 34, 37, 41 and 42]	244.801	247.501	259.973
44 TANGIBLE NET WORTH [24-22]	110.901	110.501	119.873
45 NET WORKING CAPITAL	66.751	68.151	79.323
[17 + 24]-[37+41+42]
to tally with [34-10]	66.751	68.151	79.323
46 Current Ratio  [Items 34/10]	1.50	1.50	1.57
47 Total Outside Liabilities / Tangible Net Worth	1.21	1.24	1.17

COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES

Rs in Millions

Particulars	31.03.2009	31.03.2010	31.03.2011
	Projected
A CURRENT ASSETS
1 Raw Materials
[a] Imported
Months Consumption	43.948	36.623	37.570
[b] Indigenous
Months Consumption	--	--	--
2 Other consumable spares
Excluding those included 1 above
[a] Imported	--	--	--
Months Consumption
[b] Indigenous
Months Consumption	0.050	0.075	0.100
Packing Materials	0.300	0.400	0.500
3 Stock in process
Months cost of production	30.000	35.000	40.000
4 Finished goods
Months cost of sales	11.000	12.000	13.000
5 Receivable other than export and deferred receivables [including bills purchased and discounted by bankers]
Months domestic sales	101.500	105.000	110.000
[excluding deferred payment sales]
6 Export receivables [including bills purchased and discounted by bankers months export sales]	0.000	0.000	0.000
7 Advances to suppliers of raw materials and stores / spares consumable	1.500	1.700	1.900
8 Other current Assets including cash and bank balances and deferred receivable due within one year
Cash and Bank Balance	0.300	0.300	0.300
Fixed Deposit with Bank	0.053	0.053	0.053
Others //	12.000	14.000	16.000
TOTAL CURRENT ASSETS	200.651	205.151	219.423
B CURRENT LIABILITIES
[Other than bank borrowing for working capital]
10 Creditors for purchases of raw materials and stores and consumable spares	32.500	35.000	37.500
11 Advances from customers	0.400	0.500	0.600
12 Statutory liabilities	0.000	0.000	0.000
13 Other current liability including short term borrowing dividend payable, installment of DPG public deposit, debentures etc	1.000	1.500	2.000
14 TOTAL	33.900	37.000	40.100

COMPUTATION OF MAXIMUM PERMISSIBLE BANK FINANCE FOR WORKING CAPITAL

Rs in Millions

Particulars	31.03.2009	31.03.2010	31.03.2011
	Projected
1. Total Current Assets	200.651	205.151	219.423
2. Other Current Liabilities [Other than bank borrowing]	33.900	37.000	40.100
3. Working Capital Gap [WCG]	166.751	168.151	179.323
4. Min. stipulated net working Capital i.e. 30 % of working Capital Gap as the case may be depending upon the method of lending being applied. [Export receivable to be excluded under both methods]	50.025	50.445	53.797
5. Actual / projected net working capital	66.751	68.151	79.323
6. Item 3 minus item 4	116.726	117.706	125.526
7. Item 3 minus item 5	100.000	100.000	100.000
8. Miximum permissible bank finance	100.000	100.000	100.000
9. Excess borrowings representing

FUND FLOW STATEMENT

Rs in Millions

Particulars	31.03.2009	31.03.2010	31.03.2011
	Projected
SOURCES
1 Net Profit [after tax]	4.545	6.600	9.372
[a] Depreciation	1.800	1.800	1.800
[b] Increase in Capital
[c] [ii] Other Term Liabilities
Unsecured Loans – Directors and Shareholders	[18.809]	[7.000]	0.000
Deferred Tax	0.037	--	-
[d] Increase in Deferred Payment Credits Decrease in	-	-	-
[e] Other non-current assets	--	--	--
Fixed Assets
[f] Others	--	--	--
[g] TOTAL	[12.427]	1.400	11.172
2 USES [a] Net Loss
[b] Decrease in Term Liabilities [Including A Closely Held Public Limited Liability Company Deposits]	--	--	--
[c] Increase in	--	--	--
Other Non Current Assets
Fixed Assets [Net]
[d] Dividend	--	--	--
[e] Others	--	--	--
[f] Total
3 Long – Term Surplus [+] / Deficit [-] [Item 1 minus Item 2]	[12.427]	1.400	11.172
4 Increase / Decrease in Current Assets [As per details given below]	38.910	4.500	14.272
5 Increase / Decrease in Current Liabilities other than bank borrowings.	[2.049]	3.100	3.100
6 Increase / Decrease in Working Capital Gap	40.959	1.400	11.172
7 Net Surplus [+] / Deficit [-] [Difference of 3 & 6]	[53.386]	[0.00]	0.00
8 Increase / Decrease in Bank Borrowings	53.386	--	--

VALUE OF FRINGE BENEFITS IN TERMS OF SECTION 115 WC READ WITH SECTION 115WB FOR THE ASSESMENT YEAR

(Rs. In Millions)

Section under which chargeable to Fringe Benefit Tax	Name	Amount of expenditure incurred or payment made	Percentage expenditure/ Payment being fringe benefits	Value of fringe benefits
115WB(1)(b)	Free or concessional ticket provided by the employer for private journeys of this employees or their family members	Nil	100%	Nil
115WB(1)(c)	Any contribution by the employer to any approved Superannuation fund for employees (see Note1)	Nil	100%	Nil
115WB(2)(A)	Entertainment	0.052	20%	0.010
115WB(2)(B)	Provision of Hospitality of every kind by the employer to any person (see Note 2)	Nil	20% (see Note 3)	Nil
115WB(2)(C)	Conference (Other than fee for participation by the employees in any conference) (See Note 4)	Nil	20%	Nil
115WB(2)(D)	Sales promotion including publicity (see Note 5)	Nil	20%	Nil
115WB(2)(E)	Employees’ Welfare (see Note 6)	Nil	20%	Nil
115WB(2)(F)	Conveyance, (see Note 7)	Nil	20% (See Note 8)	Nil
115WB(2)(G)	Use of hotel, boarding and lodging facilities	0.811	20% (See Note 9)	0.162
115WB(2)(H)	Repair, Running (including fuel), maintenance of motor cars and the amount of depreciation thereon	0.461	20% (see Note 10)	0.092
115WB(2)(I)	Repair, Running ( Including Fuel) and maintenance of aircraft and the amount of depreciation thereon	Nil	20% (See Note 11)	Nil
115WB(2)(J)	Use of Telephone (Including mobile phone) other than expenditure on leased telephone lines	0.183	20%	0.037
115WB(2)(K)	Maintenance of any accommodation in the nature of guest house other than accommodation used for training purpose	Nil	20%	Nil
115WB(2)(L)	Festival Celebrations	Nil	50%	Nil
115WB(2)(M)	Use of health club and similar facilities	Nil	50%	Nil
115WB(2)(N)	Use of any other club facilities	Nil	50%	Nil
115WB(2)(O)	Gifts	Nil	50%	Nil
115WB(2)(P)	Scholarships	Nil	50%	Nil
115WB(2)(Q)	Tour and Travel (Including foreign travel) (see Note 12)	Nil	5%	N.A
Total		1.508		0.302

Notes:

1. For Assessment year 2007-08 and subsequent assessment years, the value of fringe in respect of contribution by the employer to an approved superannuation fund shall be the amount of contribution which exceeds Rs. 0.100 Million in respect of each employee

2. Expenditure on hospitality does not include the following :-

(i) any expenditure on, or payment for, food or beverage provided by the employer to his employees in office or factory;

(ii) any expenditure on, or payment through paid vouchers which are not transferable and usable only at eating joints or outlets

3. In the case of an employer engaged in the business of hotel 5% shall be substituted for 20%. In addition to this, in the case of an employer engaged in the business of carriage of passengers or goods by aircraft or by ship 5% shall be substited for 20% for assessment year 2007-07 and subsequent assessment years.

4. For the purpose of this clause, any expenditure on conveyance, tour and travel (including foreign travel), on hotel or boarding and lodging in connection with any conference shall be deemed to be expenditure incurred for the purpose of conference.

5. The following expenditure on advertisement shall not be considered as expenditure on sales promotion including publicity.

(i) the expenditure (including rental) on advertisement of any form in any print (including journals, catalogues or price lists) or electronic media or transport system.

(ii) The expenditure on the holding of, or the participation in any press conference or business convertion, fair or exhibition.

(iii) The expenditure on sponsorship of any sport event or any other event organized by any Government agency or trade association or body.

(iv) The expenditure on the publication in any print or electronic media of any notice required to be published by or under any law or by an order of a court or Tribunal

(v) The expenditure on advertisement by way of signs, art work, painting, banners, awnings, direct mail, electric spectaculars, kiosks, hoardings, bill boards or by way of such other medium of advertisement.

(vi) The expenditure byway of payment of any advertising agency for the purpose of clause (i) to (v) above

(vii) The expenditure on distribution of free samples of medicines or of medical equipment, to doctors (not be considered as expenditure or sales promotion, including publicity for assessment year 2007-08 and subsequent assessment years)

(viii) The expenditure by way of payment to any person of repute for promoting the sale of goods or services for the business of the employer (not to be considered as expenditure on sales promotion, including publicity for assessment year 2007-08 and subsequent assessment years)

6. For the purpose of this clause, any expenditure incurred or payment made to fulfil any statutory obligation or mitigate occupational hazards or provide first aid facilities in the hospital or dispensary run by the employer shall not be considered as expenditure for employee’s welfare

7. For assessment year 2007-08 and subsequent assessment years, clause (F) of sub-section (2) of section 115WB refers to expense of ‘conveyance’

8. In the case of an employer engaged in the business of construction, or in the business of manufacture of production of pharmaceuticals or computer software, 5% shall be substituted for 20%

9. In the case of an employer engaged in the business of manufacture or production of pharmaceuticals or computer software, 5% shall be substituted for 20% Besides, in the case on an employer engaged in the business of carriage of passengers or goods by aircraft or by ship 5% shall be substituted for assessment year 2007-08 and subsequent assessment years

10. In the case of and employer engaged in the business of carriage or passengers or goods by motor car, 5% shall be substituted for 20%

11. In the case of an employer engaged in the business of carriage of passengers or goods by aircraft, ‘Nil’ shall be substituted for 20%

12. This clause is applicable for assessment year 2007-08 and subsequent assessment yars”.

STATEMENT OF ASSETS AND LIABILITIES

Name : Mr. Mohd. Sajid

Investment In Business Capital

Rs in Millions

Name of the Company / firm / concern in which investment is made	Amount invested
Indec Overseas	0.254
Rajdhani Sales Corporation	0.664
M. H. Polymers Private Limited	6.681

Deposits held with banks

Rs in Millions

Name of the Bank	Savings	Amount of Deposit
B. M. C. Limited	Savings	0.047

Deposits held with Companies / Others

Rs in Millions

Name of the Company	Nature of Deposit	Amount of Deposits
M. H. Polymers Private Limited	64237 Shares	0.642
Kanpur Securities Limited		0.498
North India Securities Private Limited		1.043
Friends Circle C.G.H.S. Limited		1.544

Life Insurance Policies

Rs in Millions

Policy No.	Annual Premium	Sum assured
120623008	0.006	0.100
120622987	0.006	0.100
120622988	0.006	0.100
120618724	0.006	0.100
120618725	0.006	0.100
121832883	0.039	0.500

Immovable property

Rs in Millions

Name of the owner	Location / address of the property	Type of property i.e. whether residential / agricultural / industrial / commercial etc.	Present market value as on 31.03.2008
Mohd. Sajid [1/3^rd Share in the Properties ]	N – 73 and 74, Balla House, Okhala New Delhi Gali No 18, Zakir Nagar, Okhala Delhi 5182, Gali Sultan Yar Khan, Delhi Katra Bashir Ganj, Delhi Village Tilpta, Greater Noida	Residential Residential Residential Residential Residential	10.000 0.700 0.750 1.000 9.200

Other Assets

Rs in Millions

Nature / details of assets	Market value of assets
Cash	0.125

Total Assets : Rs. 34.149 Millions

LIABILITIES

Credit limits / facilities with Financial Institutions and Banks

Name of the institution / bank	Details of nature and extent of credit limits / facilities enjoyed
	Nature of credit facility	Extent [Rs in Millions]
ICICI Bank	Car Loan	0.191

Borrowings from others

Name of the Lender	Amount borrowed	Details of securities
Mohd. Salim	Rs. 0.060 Million	Nil

Total Liabilities : Rs. 0.251 Millions

Net Worth : Rs. 33.898 Millions

Name : Mr. Mohd. Shakil

Investment In Business Capital

Rs in Millions

Name of the Company / firm / concern in which investment is made	Amount invested
Indec Overseas	0.954
Rajdhani Sales Corporation	0.710
M. H. Polymers Private Limited	9.120

Deposits held with banks

Rs in Millions

Name of the Bank	Savings	Amount of Deposit
B. M. C. Limited	Savings	0.015

Deposits held with Companies / Others

Rs in Millions

Name of the Company	Nature of Deposit	Amount of Deposits
M. H. Polymers Private Limited	64237 Shares	0.642
Kanpur Securities Limited		0.498
North India Securities Private Limited		1.043
Friends Circle C.G.H.S. Limited		1.287

Life Insurance Policies

Rs in Millions

Policy No.	Whether Endowment policy or whole Life Policy	Annual Premium	Sum assured
120622945	Endowment	0.006	0.100
120621496	---------||--------	0.006	0.100
120621504	---------||--------	0.013	0.200
120626834	---------||--------	0.013	0.200
120618718	---------||--------	0.006	0.100
120618719	---------||--------	0.006	0.100
120626833	---------||--------	0.007	0.100
121832908	---------||--------	0.040	0.500

Immovable property

Rs in Millions

Name of the owner	Location / address of the property	Type of property i.e. whether residential / agricultural / industrial / commercial etc.	Present market value as on 31.03.2008
Mohd. Shakil [1/3^rd Share in the Properties ]	N – 73 and 74, Balla House, Okhala New Delhi Gali No 18, Zakir Nagar, Okhala Delhi 5182, Gali Sultan Yar Khan, Delhi Katra Bashir Ganj, Delhi Village Tilpta, Greater Noida	Residential Residential Residential Residential Residential	10.000 0.700 0.750 1.000 9.200

Other Assets

Rs in Millions

Nature / details of assets	Market value of assets
Cash	0.200

Total Assets : Rs. 37.519 Millions

LIABILITIES

Borrowings from others

Rs in Millions

Name of the Lender	Amount borrowed	Details of securities
Personal Loan	0.419	Nil

Total Liabilities : Rs. 0.419 Millions

Net Worth : Rs. 37.100 Millions

Name : Mr. Mohd. Khalid

Annual Income :

To Salary, Interest and Business Profit : Rs. 5.500 Millions

Investment In Business Capital

Rs in Millions

Name of the Company / firm / concern in which investment is made	Amount invested
Indec Overseas	0.005
M. H. Polymers Private Limited	11.954

Deposits held with banks

Rs in Millions

Name of the Bank	Savings	Amount of Deposit
B. M. C. Limited	Savings	0.006
Bank of India	Saving	0.008

Deposits held with Companies / Others

Rs in Millions

Name of the Company	Nature of Deposit	Amount of Deposits
M. H. Polymers Private Limited	64237 Shares	0.642
Friends Circle C.G.H.S. Limited		1.306

Life Insurance Policies

Rs in Millions

Policy No.	Annual Premium	Sum assured
120622024	0.016	0.300
121832817	0.037	0.500

Immovable property

Rs in Millions

Name of the owner	Location / address of the property	Type of property i.e. whether residential / agricultural / industrial / commercial etc.	Present market value as on 31.03.2008
Mohd. Khalid [1/3^rd Share in the Properties ]	N – 73 and 74, Balla House, Okhala New Delhi Gali No 18, Zakir Nagar, Okhala Delhi Katra Bashir Ganj, Delhi Village Tilpta, Greater Noida	Residential Residential Residential Residential	10.000 0.700 1.000 9.200

Other Assets

Rs in Millions

Nature / details of assets	Market value of assets
Cash	0.030

Total Assets : Rs. 35.651 Millions

LIABILITIES

Borrowings from others

Rs in Millions

Name of the Lender	Amount borrowed	Details of securities
Personal Loan	2.030	Nil

Total Liabilities : Rs. 2.030 Millions

Net Worth : Rs. 33.621 Millions

MOHD. SHAKIL

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Capital		15.887	13.122	12.211
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		15.887	13.122	12.211
LOAN FUNDS		0.419	0.468	2.732
TOTAL BORROWING		0.419	0.468	2.732
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		16.306	13.590	14.943
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1.985	1.985	0.994
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.650	0.650	0.650
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Cash & Bank Balances	0.035	0.016	0.214
	Deposits	13.636	10.939	13.085
Total Current Assets		13.671	10.955	13.299
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.000	0.000	0.000
	Provisions	0.000	0.000	0.000
Total Current Liabilities		0.000	0.000	0.000
Net Current Assets		13.671	10.955	13.299
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		16.306	13.590	14.943

MOHD. SAJID

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Capital		14.408	12.184	11.519
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		14.408	12.184	11.519
LOAN FUNDS		0.250	0.060	1.078
TOTAL BORROWING		0.250	0.060	1.078
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		14.658	12.244	12.597
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		3.113	2.045	1.054
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		2.204	2.201	1.703
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Cash & Bank Balances	0.173	0.185	0.260
	Deposits	9.168	7.813	9.580
Total Current Assets		9.341	7.998	9.840
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.000	0.000	0.000
	Provisions	0.000	0.000	0.000
Total Current Liabilities		0.000	0.000	0.000
Net Current Assets		9.341	7.998	9.840
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		14.658	12.244	12.597

MOHD. KHALID

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2007	31.03.2006	31.03.2005
SHAREHOLDERS FUNDS
1] Capital		14.088	12.311	11.253
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		14.088	12.311	11.253
LOAN FUNDS		2.297	4.330	2.530
TOTAL BORROWING		2.297	4.330	2.530
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		16.385	16.641	13.783
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2.402	2.458	1.563
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.650	0.650	0.650
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Cash & Bank Balances	0.043	0.032	0.079
	Deposits	13.290	13.429	11.403
	Other Current Assets	0.000	0.072	0.088
Total Current Assets		13.333	13.533	11.570
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.000	0.000	0.000
	Provisions	0.000	0.000	0.000
Total Current Liabilities		0.000	0.000	0.000
Net Current Assets		13.333	13.533	11.570
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		16.385	16.641	13.783

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.43.79
UK Pound	1	Rs.80.05
Euro	1	Rs.64.56

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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		54

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/normal.	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