MIRA INFORM REPORT

Report Date :

17.11.2008

IDENTIFICATION DETAILS

Name :	SHAKUN POLYMERS LIMITED

Registered Office :	501, Ivory Terrace, R.C. Dutt Road, Alkapuri, Vadodara-390005, Gujarat

Country :	India

Financials (as on) :	31.03.2008

Date of Incorporation :	03.04.1995

Com. Reg. No.:	04-25304

CIN No.: [Company Identification No.]	U17119GJ1995PLC025304

TAN No.: [Tax Deduction & Collection Account No.]	BRDS01178C

PAN No.: [Permanent Account No.]	AACCS5500Q

Legal Form :	A Closely Held Public Limited Liability Company

Line of Business :	Manufacturers of Wire and Cable Compounds

RATING & COMMENTS

MIRA’s Rating :

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

Maximum Credit Limit :	USD 700000

Status :	Satisfactory

Payment Behaviour :	Slow

Litigation :	Clear

Comments :	Subject is a well established and reputed company having satisfactory track. Trade relations are fair. Business is active. Payments are reported as slow. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	501, Ivory Terrace, R.C. Dutt Road, Alkapuri, Vadodara-390005, Gujarat, India
Tel. No.:	91- 265 - 2335 537 / 2330 920 / 2333 807 / 2353 987
Fax No.:	91 - 265 - 2339 402
E-Mail :	mktg@shakunpolymers.com sales@shakunpolymers.com
Website :	http://www.shakunpolymers.com

Factory :	Plot No. 2-3, Silver Industrial Estate, Pataliya Road, Bhimpore, Daman – 396210, Gujarat, India
Tel. No.:	91-265-2333807
Fax No.:	91-265-2339402

DIRECTORS

Name :	Mr. Rajesh D Bansal
Designation :	Whole Time Director
Address :	18 Gotri Co-operative Housing Society, Gotri Road, Baroda – 390021, Gujarat, India
Date of Birth/Age :	03.03.1964
Date of Appointment :	02.01.1996

Name :	Mr. Rakesh D Bansal
Designation :	Whole Time Director
Address :	04 Gotri Co-operative Housing Society, Gotri Road, Baroda – 390021, Gujarat, India
Date of Birth/Age :	27.03.1966
Date of Appointment :	02.01.1996

Name :	Mr. Geetesh D Bansal
Designation :	Whole Time Director
Address :	5 Gotri Co-operative Housing Society, Gotri Road, Baroda – 390021, Gujarat, India
Date of Birth/Age :	27.10.1967
Date of Appointment :	02.01.1996

Name :	Mr. Himanshu Biharipradas Joshi
Designation :	Director
Address :	306, Bhagtodaya Tower – 1, Pashabhai Park, Race Course, Vadodara – 390007, Gujarat, India
Date of Birth/Age :	29.09.1965

Name :	Mr. Avinash M. Patel
Designation :	Director
Address :	Kashi Dhan, Near Paratap Sarover, B/H Panchvati Post Ranoli Vadodara – 391350, Gujarat, India
Date of Birth/Age :	23.04.1958

Name :	Mr. Pankaj Amritlal Shah
Designation :	Director
Address :	B-120, Shrenik Park, Akota Sradium, Akota, Vadodara – 390020, Gujarat, India
Date of Birth/Age :	31.07.1957

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 17.09.2008)

Names of Shareholders		No. of Shares

Ritu Bansal		184000
Seema Bansal		422000
Ashima Bansal		241200
Rajesh Bansal – HUF		150900
Rakesh Bansal – HUF		113000
Rakesh Bansal		300700
Geetesh Bansal		186700
Rajesh Bansal		79300
Geetesh Bansal – HUF		222500
Shakuntala Bansal		488300
Dhanraj Bansal		100000
Pritesh Bansal		18700
Rishina Bansal		27200
Anirudh Bansal		80300
Abhinav Bansal		80300
Tanushree Bansal		23800
Tanushree Bansal Edu Trust		75000

(AS ON 31.03.2008)

Category		Percentage

Directors or relatives of directors		96.00
Other top fifty shareholders		4.00

Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturers of Wire and Cable Compounds

Products :

ITC Code No.	Product Description
3901300	Zero Halogen Flame Retardant Compound
39011090	Polyethylene Compound for Insulation and Jacketing of Cables
39019090	Thermoplastic Semi Counting Compound
85445990	Insulated Wire and Cables

EcoTek Halogen Free Flame Retardant Compounds
FrTek PVC Flame Retardant Compounds
XL Tek Crosslinkable Compounds
EsconTek Semi Conductive Compounds
VinylTek PVC Compounds
PE Insulation Insulation Polyethylene Compounds
PE Sheathing Black Polyethylene Compounds

GENERAL INFORMATION

Bankers :

Bank of Baroda

ATM Ajyot Ashram Branch, Indra Prastha, Ellora Park, Opposite Vegetable Market, Baroda – 390007, Gujarat, India

Facilities :

Secured Loans	31.03.2008 Rs. In Millions

Term Loan (Secured against Land/ Building and Machineries)	16.483
Cash Credit A/c (Against Raw – Materials, Stores, Stock and Book Debts)	156.843
Bills Discounting (Against Receivable – Customers)	18.417

Total	191.743

Unsecured Loans	31.03.2008 Rs. In Millions

From Directors	0.500
From Shareholders	3.500
From Citi Banks	6.527

Total	10.527


Banking Relations :	Satisfactory

Auditors :
Name :	Shah Mehta and Bakshi Chartered Accountants
Address :	2^nd Floor, Prasanna House, Associated Society, Opposite Radhakrishna Park, Near Akota Stadium, Vadodara – 390020, Gujarat, India

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount

4000000	Equity Shares	Rs. 10/- each	Rs. 40.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

3460000	Equity Shares	Rs. 10/- each	Rs. 34.600 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		34.600	34.600	34.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		110.901	67.759	46.458
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		145.501	102.359	81.058
LOAN FUNDS
1] Secured Loans		191.743	86.042	50.884
2] Unsecured Loans		10.527	12.167	18.198
TOTAL BORROWING		202.270	98.209	69.082
DEFERRED TAX LIABILITIES		6.355	4.512	3.162

TOTAL		354.126	205.080	153.302

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		92.275	62.849	60.633
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		0.800	0.030	0.035
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	101.927	58.212	44.088
	Sundry Debtors	98.352	72.877	47.068
	Cash & Bank Balances	72.207	7.163	1.639
	Other Current Assets	23.909	11.871	9.551
	Loans & Advances	11.126	6.718	3.339
Total Current Assets		307.521	156.841	105.685
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	26.902	9.695	6.139
	Provisions	19.568	4.945	6.912
Total Current Liabilities		46.470	14.640	13.051
Net Current Assets		261.051	142.201	92.634

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		354.126	205.080	153.302

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		756.340	513.650	231.340
Other Income		91.323	78.014	44.068
Total Income		847.663	591.664	275.408

Profit/(Loss) Before Tax		75.515	42.605	25.460
Provision for Taxation		26.300	15.353	0.343
Profit/(Loss) After Tax		49.215	27.252	25.117

Earnings in Foreign Currency :		433.137	296.723	78.124

Expenditures :
	Raw Material Consumed	609.657	410.680	172.607
	Purchases made for re-sale	1.475	1.112	0.443
	Consumption of stores and spares parts	2.093	1.373	0.800
	Increase/(Decrease) in Finished Goods	(31.440)	[8.418]	[5.989]
	Salaries, Wages, Bonus, etc.	10.019	7.135	5.361
	Managerial Remuneration	2.340	2.265	1.197
	Payment to Auditors	0.370	0.258	0.274
	Interest	12.239	10.222	3.319
	Insurance Expenses	1.229	0.743	0.454
	Power & Fuel	10.755	7.439	5.052
	Depreciation & Amortization	7.997	7.080	5.809
	Other Expenditure	145.412	109.170	60.621
Total Expenditure		803.588	549.059	249.948

KEY RATIOS

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
PAT / Total Income	(%)	5.81	4.61	9.12

Net Profit Margin (PBT/Sales)	(%)	9.98	8.29	11.01

Return on Total Assets (PBT/Total Assets}	(%)	18.89	19.39	15.31

Return on Investment (ROI) (PBT/Networth)		0.52	0.42	0.31

Debt Equity Ratio (Total Liability/Networth)		1.71	1.10	1.01

Current Ratio (Current Asset/Current Liability)		6.62	10.71	8.10

LOCAL AGENCY FURTHER INFORMATION

Contingent Liabilities:

Guarantee given by the banks for which the company counter guarantee amounting to Rs.2.099 Millions

Letter of Credit issued for purchases of raw materials Rs.15.690 Millions

Bankers Charges Report as per Registry

Name of the company

SHAKUN POLYMERS LIMITED

Presented By

Bank of Baroda, ATM Ajyot Ashram Branch, Vadodara

1) Date and description of instrument creating the change

22.06.2005

Memorandum for Release and redeposit of title deeds

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

Rs. 70.500 Millions

	Rs in Millions
Term Loan	15.000
Cash Credit	35.500
Foreign L/C DP / DA 90 days	2.500
Performance Bank Guarantee	17.500
Total	70.500

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

The property being Plot No. 2104 adm 5000 sq. mtrs of GIDC Industrial Estate, Halol situated on land bearing Revenue Survey No. 1592 paiki of mouje village Kanjari in the Registration of sub district Halol, Panchmahal
Being Non Agricultural land adm. 1451 sq. mtrs. Being S No. 39/2 and Plot No. 2 in the scheme known as Silver Industrial estate at mouje Bhimpore in Registration sub district Daman of Union Territory of India
Being Non Agricultural land adm 1156 sq. mtrs. Being R S No. 39/1 and Plot No. 3 in the scheme known as Silver Industrial estate at mouje Bhimpore in Registration sub district Daman of Union Territory of India
Being Non Agricultural land adm 1273 sq. mtrs. Being R S No. 38/4 and Plot No. 4 in the scheme known as Silver Industrial estate at mouje Bhimpore in Registration sub district Daman of Union Territory of India
Being Non Agricultural land adm 1391 sq. mtrs. Being R S No. 38/3 and Plot No. 5 in the scheme known as Silver Industrial estate at mouje Bhimpore in Registration sub district Daman of Union Territory of India
Being Non Agricultural land adm 1517 sq. mtrs. Being R S No. 38/2 and Plot No. 3in the scheme known as Silver Industrial estate at mouje Bhimpore in Registration sub district Daman of Union Territory of India

Together with all buildings and structure thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to earth, both present and future

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

Term Loan

Rate of Interest – 2.25 % over BPLR i.e. 12.75 % p.a. monthly rest

Margin – Hypothecation of plant and machinery 29.90 %

Repayable in 60 instalments of Rs. 0.250 Million each

Cash Credit – Hypothecation

0.5 % over BPLR i.e. 11.00 % p.a. monthly rest

Margin : CC Hyp. Book debts 40 %

R. M. 25 %

F G WIP and PM 30 %

Letter of credit

For DP L/C margin 10 %

For DA L/C 10 % at the time of opening

15 % at the time of acceptance of documents

Period 12 months

Commission as per guideline of the bank

Bank Guarantee : Margin 10 % by way of FDR and Commission as per guideline of the bank.

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

Bank of Baroda,

ATM Ajyot Ashram Branch, Indra Prastha, Ellora Park, Opposite Vegetable Market, Baroda – 390007, Gujarat, India

6) Date and brief description of instrument modifying the charge

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.

This form is for	Modification of charge
Charge identification number of the modified	90101121
Corporate identity number of the company	U17119GJ1995PLC025304
Name of the company	SHAKUN POLYMERS LIMITED
Address of the registered office or of the principal place of business in India of the company	501, Ivory Terrace, R.C. Dutt Road, Alkapuri, Vadodara-390005, Gujarat
Type of charge	Immovable Property
Particular of charge holder	Bank of Baroda, ATM Ajyot Ashram Branch, Indra Prastha, Ellora Park, Opposite Vegetable Market, Baroda – 390007, Gujarat, India atmajy@bankofbaroda.com
Nature of description of the instrument creating or modifying the charge	Second supplemental memorandum of entry in respect of extension of mortgage by constructive delivery / deposit of title deeds
Date of instrument Creating the charge	17.07.2007
Amount secured by the charge	Rs. 180.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest TL 1.25 % over BPLR i.e. 14.50 % p.a. monthly rest, C. C. Hypothecation 0.50 % over BPLR i.e. 13.75 % p.a. at presently on monthly rest + 0.50 % p.a. for limits under LOC Terms of Repayment Working capital – On Demand TL – New 60 monthly Installments Margin TL – New 44 % CC Stock and SIP – 25 % , Receivables 30 % Extent and Operation of the charge Credit FACI are sec by E M over IMMO, Properties more particularly described in second schedule to the deed
Short particulars of the property charged	Credit FACI are sec by E M over IMMO, Properties more particularly described in second schedule to the deed
Date of latest modification prior to the present modification	08.09.2006
Particulars of the present modification	By this execution the charge extended to cover revised credit facilities aggregating to Rs. 180.000 Millions

Fixed Assets:

Land
Factory Shed
Plant and Machinery
Testing Equipment
Other Equipment
Furniture and Fixture
Vehicles

Website details:

Profile

Subject is in the business of Compounding having focus on Wire and Cable Compounding Sector, started its manufacturing activities in the year 1991. Now it has got three manufacturing locations under the style of HALOL, DAMAN & PADANA DIVISION. The total installed capacity of Shakun Polymers Limited is approximately 20000 Metric Tonnes per annum.

The high level of know-how in house with particular attention on production technologies is a striving force of Shakun. The internal use of this know-how and continuous research and development activities keeps it ahead of competition.

The product quality standards offered are continuously monitored and guaranteed.

Every problem encountered is effectively faced and solved in responsible and serious manner.

Investing its resources periodically in manpower, test equipments for Research & Technological development with an aim of constantly pursuing growth in its production know-how.

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.49.46
UK Pound	1	Rs.73.17
Euro	1	Rs.62.96

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.	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

MIRA INFORM REPORT

101.927

58.212

98.352

72.877

72.207

7.163

23.909

11.871

11.126

6.718

307.521

156.841

26.902

9.695

19.568

4.945

46.470

14.640

261.051

142.201

5.81

4.61

9.98

8.29

18.89

19.39

0.52

0.42

1.71

1.10

6.62

10.71

Unit