MIRA INFORM REPORT

Report Date :

13.10.2008

IDENTIFICATION DETAILS

Name :	ASTRAL POLYTECHNIK LIMITED
Registered Office :	901, Parshwa Towers, Opp. Rajpath Club, Sarkhej, Gandhi Nagar, Highway, Ahmedabad – 380 054, Gujarat
Country :	India
Financials (as on) :	31.03.2008
Date of Incorporation :	25.03.1996
Com. Reg. No.:	029134
CIN No.: [Company Identification No.]	L25200GJ1996PLC029134
TAN No.: [Tax Deduction & Collection Account No.]	AHMA00853G
PAN No.: [Permanent Account No.]	AAACA9566C
Legal Form :	Public limited liability company. The company's shares are listed on the Stock Exchanges.
Line of Business :	The company is engaged in manufacturing of PVC Pipes and Joints.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 4000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Financial position is satisfactory. Trade relations are fair. General financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered good for natural business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :/ Corporate Office:	901, Parshwa Towers, Opp. Rajpath Club, 9^th Floor Sarkhej-Gandhi Nagar, Highway, Ahmedabad – 380 054, Gujarat, India
Tel. No.:	91-79-26745077 / 30112100
Fax No.:	91-79-26752214 / 26872214
E-Mail :	info@astralcpvc.com investor@astralcpvc.com co@astralcpvc.com
Website :	http://www.astralcpvc.com
Factory 1 :	Block # 1253, Santej, Kalol, Mehsana, Gujarat, India
Factory 2 :	Khasra No.# 67-72, Village: Bated, P.O. Barotiwala, Dist: Solan, Tehsil : Kasauli, Himachal Pradesh, India
Factory 3:	Bigshare Services Private Limited
Address:	E – 2, Ansa Industries Estate, Saki Vihar Road, Sakinaka Andheri (E), Mumbai - 400072
Branch Office :	Located at · Mumbai · New Delhi · Bangalore

DIRECTORS

Name :	Mr. Sandeep P. Engineer
Designation :	Managing Director
Address :	59, Nehru Park, Vastrapur, Ahmedabad, Gurjarat, India
Date of Birth/Age :	11/05/1961
Date of Appointment :	25/03/1996
Name :	Mr. Jagruti S. Engineer
Designation :	Executive Director
Address :	59, Nehru Park, Vastrapur, Ahmedabad, Gurjarat, India
Date of Birth/Age :	15/07/1965
Date of Appointment :	25/03/1996
Name :	Mrs. Tarlika G. Dalal
Designation :	Director
Address :	31905, Standard Cora, Avon Lake, Ohia, USA
Date of Birth/Age :	01/03/1948
Date of Appointment :	15/12/1996
Name :	Mr. Nimish G. Dalal
Designation :	Non – Executive Director
Address :	31905, Standard Cora, Avon Lake, Ohia, USA
Date of Birth/Age :	06/05/1971
Date of Appointment :	15/12/1996
Name :	Mr. Kyle A. Thomson
Designation :	Non – Executive Director
Address :	102, Season Lake, NE Hunt’s Villa, 35811, USA
Date of Appointment :	01/12/1997
Name :	Mr. Kirk A. Thomson
Designation :	Director
Address :	538, Wess Toylor, Hun’s Villa, 35811, USA
Date of Appointment :	01/12/1997
Name :	Mr. Pradip N. Desai
Designation :	Independent and Non-Executive Director
Name :	Mr. K. Raghunath Shenoy
Designation :	Independent and Non-Executive Director
Name :	Mr. k R Shenoy
Designation :	Chairman (Independent Director)

KEY EXECUTIVES

Name :	Mrs. Monika Pandya
Designation :	Company Secretary
Name :	Mr. M M Vakil
Designation :	President
Name :	Mr. Hiranand Savlani
Designation :	Chief Financial Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(As on 31.03.2008)

Category of Shareholders	No. of Shares	Percentage of Holding
Shareholding of promoter and promoter Group
India
Individuals / Hindu Undivided Family	2717674	24.18
Bodies Corporate	1575817	14.02
Foreign
Individuals (Non-Residents Individuals/ Foreign Individuals)	1295884	11.53
Bodies Corporate	1582241	14.08
Public Shareholding
Institutions
Mutual Fund / UTI	286947	2.55
Financial Institutions Bank	180000	1.60
Foreign Institutional Investors	20500	0.18
Non-Institutions
Bodies Corporate	558065	4.97
Individuals Shareholders holding nominal share capital up to Rs.0.100 Million	1813294	16.14
Individuals Shareholders holding nominal share capital in excess of Rs.0.100 Million	1005905	8.95
Directors and their Relatives	58371	0.52
NRI	138494	1.23
Trust	100	0.00
Clearing Members	4764	0.04
Total	11238056	100.00

BUSINESS DETAILS

Line of Business :

The company is engaged in manufacturing of PVC Pipes and Joints.

Products :

ITC Code No.	Product Description
39173990	Pipes
39174000	Fittings

· Astral FlowGuard CPVC

o Fittings

o Pipes

· Astral Corzan

o Fittings

o Pipes

· Astral Aquarius

o Fittings

o Pipes

Agencies Held :

K. B. Mehta Construction Private Limited

PRODUCTION STATUS

INSTALLED CAPACITY 

(As on 31.03.2008)

Particulars	Unit	Actual Production
CPVC Pipes	Mtrs.	9775924
PVC Pipes	Mtrs.	6199519
CPVC Fittings	Pcs.	21607366
PVC Fittings	Pcs.	2599402
Others	Mtrs. / Pcs.	2243552

GENERAL INFORMATION

Suppliers :

· Ferromatik Milacron India Limited

· Vihan Engineering Private Limited

· Bhavmark Systems

· Elgi Equipments Limited

· Pimco Machines Private limited

· Neoplast Engineering Private Limited

· Jaiveer

· Super Nova Engineers Limited

· Savi Tools

· Sunshine Weigh Systems Private Limited

· Deepak Poly Plast

· Aqua Treat

· Mathews International Corporation [Asia] Pte. Limited

· Vrijsons Engineers

· Tower Tech Cooling Systems Private Limited

No. of Employees :

15

Bankers :

· Tamilnadu Mercantile Co-operative Bank, Ahmedabad, Gujarat, India

· Madhupura Mercantile Co-operative Bank.

· Corporation Bank – S G Highway,

· Corporation Bank – Mumbai,

· Corporation Bank – Delhi,

· Corporation Bank – Bangalore

· Corporation Bank – Rangoli Complex, Ahmedabad - 390006

· Corporation Bank – Industrial finance Branch, Rangoli Complex, 1^st Floor, Opp. V. S. Hospital, Ellis Bridge, Ashram Road, Ahmedabad – 380006, Gujarat, India

Tel No.: 91-79-26575321 / 26584923

Fax No.: 91-79-26576942

Email : cb489@corpbank.co.in

Website : http://www.corbank.com

· Standard Chartered Bank

Address : Abhijeet – II, Mithakhali Six Road, Ahmedabad, Gujarat, India

Facilities :

Secured Loans	(As on 31.03.2008) Rs. In Millions
From Banks
a) Cash Credit
In Rupee	93.643
In Foreign Currency	14.635
b) Term Loans
In Rupee	138.489
In Foreign Currency	31.707
C) Vehicle Loans	3.863
Total	282.337

Notes :

1. Secured by way of first pari-passu charge, both present and future, in respect of all the current assets of the Company and fixed assets and further secured by personal guarantees of Directors.

2. Secured by way of hypothecation of respective motor vehicles purchased.

Unsecured Loans	(As on 31.03.2008) Rs. In Millions
a) From Banks	38.292
b) From Others
From a Shareholder	0.050
Trade Deposits	0.873
Total	39.215

Banking Relations :	Satisfactory
Auditors :
Name :	N Gamadia and Company Chartered Accountant Deloitte Haskins and sells Chartered Accountants Address : ‘Heritage’, 3^rd Floor, Near Gujarat Vidhyapith, Off. Ashram Road, Ahmedabad – 380 014, Gujarat, India
Associates :	· Kairav Chemicals Limited · Saumya Pharma Private Limited · Saumya Polymers Private Limited

CAPITAL STRUCTURE

(As on 31.03.2008)

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity shares	Rs.10/- each	Rs.150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11238056	Equity shares	Rs.10/- each	Rs.112.381 Millions

(Of the above 4216354 Equity Shares were allotted as fully paid-up bonus shares by capitalization of surplus in the Profit and Loss Account)

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		112.381	112.381	71.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		686.208	563.195	82.100
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		798.589	675.576	154.000
LOAN FUNDS
1] Secured Loans		282.337	243.839	162.100
2] Unsecured Loans		39.215	0.923	0.900
TOTAL BORROWING		321.552	244.762	163.000
DEFERRED TAX LIABILITIES		16.900	16.900	0.000
TOTAL		1137.041	937.238	317.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		411.438	307.863	229.200
Capital work-in-progress		171.575	18.632	0.800
INVESTMENT		0.007	0.007	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	264.912	194.205	105.900
	Sundry Debtors	327.549	203.424	95.100
	Cash & Bank Balances	258.831	366.784	12.400
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	41.277	30.998	19.900
Total Current Assets		892.569	795.411	233.300
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	323.460	215.355	110.400
	Provisions	15.097	3.421	35.900
Total Current Liabilities		338.557	218.776	146.300
Net Current Assets		554.012	576.635	87.000
MISCELLANEOUS EXPENSES		0.009	34.101	0.000
TOTAL		1137.041	937.238	317.000

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		1358.152	969.179	581.900
Other Income		46.789	12.380	1.800
Total Income		1404.941	981.559	583.700
Profit/(Loss) Before Tax		194.253	107.741	49.500
Provision for Taxation		23.449	16.517	9.300
Profit/(Loss) After Tax		170.804	91.224	40.200
Earnings in Foreign Currency :
	Value of Export Sales	14.519	12.157	NA
Total Earnings		14.519	12.157	NA
Imports :
	Resin, Pipes and Fittings	441.029	357.793	NA
	Capital Goods	12.355	13.774	NA
Total Imports		453.384	371.567	NA
Expenditures :
	Cost of Goods Sold
	Manufacturing Expenses	49.890	30.169	10.100
	Administrative Expenses	29.362	30.544	0.000
	Raw Material Consumed	882.225	691.448	315.700
	Personnel Costs	54.280	38.010	0.000
	Excise Duty	0.000	0.000	44.100
	Increase/(Decrease) in Finished Goods	(9.841)	(45.152)	(24.000)
	Selling and General Expenses	145.299	87.950	124.000
	Miscellaneous Expenses	0.000	0.000	4.700
	Interest	26.867	18.837	12.600
	Employee Cost	0.000	0.000	23.000
	Power & Fuel	0.000	0.000	10.300
	Depreciation & Amortization	32.606	22.012	13.700
Total Expenditure		1210.688	873.818	534.200

QUARTERLY RESULTS

PARTICULARS	30.06.2008
Type	1st Quarter
Sales Turnover	420.300
Other Income	7.200
Total Income	427.500
Total Expenditure	354.500
Operating Profit	73.000
Interest	8.500
Gross Profit	64.500
Depreciation	11.100
Tax	6.100
Reported PAT	47.000

KEY RATIOS

PARTICULARS	31.03.2008	31.03.2007	31.03.2006
Debt-Equity Ratio	0.39	0.51	1.27
Long Term Debt-Equity Ratio	0.24	0.29	0.76
Current Ratio	2.09	1.85	1.14
TURNOVER RATIOS
Fixed Assets	3.44	3.36	3.07
Inventory	6.3	6.78	6.65
Debtors	5.44	6.81	7.48
Interest Cover Ratio	8.22	6.73	4.93
Operating Profit Margin(%)	17.55	14.6	13.03
Profit Before Interest And Tax Margin(%)	15.3	12.44	10.67
Cash Profit Margin(%)	14.07	11.12	9.26
Adjusted Net Profit Margin(%)	11.81	8.96	6.91
Return On Capital Employed(%)	22.31	21.46	25.03
Return On Net Worth(%)	23.54	23.07	42.11

LOCAL AGENCY FURTHER INFORMATION

HISTORY

Subject was incorporated on March 25, 1996 as Astral Poly Technik Private Limited, under the Companies Act, 1956. The name of the Company was subsequentely changed to Astral Poly Technik Limited vide fresh Certificate of Incorporation dated September 29, 2006

The company is a manufacturer and provider of CPVC piping and plumbing systems in India since 1999. The company are the first licensee of Noveon, USA (formerly known as Specialty Chemical Divison of B.F Goodrich, USA) to manufacture and market CPVC piping and plumbing system in India. In order to strengthen the business plans, the company entered into a techno-financial joint venture with Specialty Process LLC of USA, which provided the company the required technical expertise for manufacturing CPVC pipes and fittings for home and industrial application.

Over the years, the company has expanded and enhanced product lines to provide continually improved services to the customers. As a manufacturer of CPVC pipes and fittings for hot and cold water, industrial and pressuresystems application, the company had introduced a new product range in lead free PVC pressure pipes and fittings in the year 2004. With a concept of providing a one-stop source for all the plastic piping systems, the company also began trading in products such as CPVC and PVC fittings, flanges and valves from Spears (USA), solvent cements (adhesive solutions) for joining pipes and fittings from IPSC (USA), underground specialty fittings from Hunter (U.K) and CPVC and PVC plastic pipes of a larger diameter from Harvell Inc. (USA) 

The Company has its production facilities at Gujarat and Himachal Pradesh to manufacture plumbing systemsfrom 1/2' to 8' diameter. The products include CPVC pipes and fittings for hot and cold water plumbing systems,CPVC industrial piping system for transportation of hazardous and highly corrosive chemicals, lead free PVCsystems for cold water application. 

The Company has received an ISO 9001:2000 certificate in respect of manufacture and supply of CPVC andPVC pipes and fittings for plumbing systems and industrial piping system. The raw material used by the company for manufacturing CPVC products is certified by National Sanitary Foundation (NSF). 

The Company enjoys countrywide presence through its extensive distribution network comprising of more than 120 Distributors and 2000 + retail outlets. The products of the Company are very well accepted in all parts of thecountry though southern and Western India contributes to more than 75% of its business.

DIVIDEND

The Directors are pleased to recommend a dividend of Re 1/- per share for the year 2007-2008, if approved by the shareholders at the Annual General Meeting. The dividend will absorb Rs. 11.238 millions and the Dividend Distribution Tax payable by the Company will amount to Rs. 1.910 millions. 

OPERATING RESULTS AND BUSINESS: 

The last year was an excellent year for the Company. The Company has achieved Net Sales of Rs. 1358.152 millions compared to Rs. 969.179 millions previous year which shows a growth of 40%. The Cash Profit increased from Rs. 113.125 millions to Rs. 203.297 millions which shows a rise of 80%. Inspite of competition from GI market and other polymer products, the Company has maintained its growth momentum. Similarly, Net Profit of the Company has increased from Rs. 91.102 millions to Rs. 170.691 millions which shows a robust rise of 87%. The substantial increase in profitability is mainly due to increase in sales volume, interest income from unutilized IPO funds and forex gain.  

Following the aggressive market penetration strategy and capitalizing on the favourable market factors, the Company is continuously increasing its production capacities. During the year, the Company has increased its production capacity under Phase-II of Expansion from 9,074 MT to 11,800 MT. Further, to take advantage of Government Policies and to strengthen its distribution network in the North East and to increase the bottom line, the management of the Company has continued its expansion activity for manufacturing various sizes of Fittings at Himachal Pradesh. 

To increase the awareness of CPVC material, Lead Free PVC material and various new products which Company is planning to launch shortly, management of the Company is continuously sponsoring the training programs for Plumbers and sponsoring various Architect Meets and Builders Meets in various parts of the Country. 

PROJECT EXPANSION 

The expansion activities under the Phase - II are going on with full swing and as per projection. Considering the last years' performance, the capacity utilization and the demand for 'ASTRAL' products in the market, management had decided to increase the production capacity up to 25968 MT per annum instead of originally planned upto 18479 MT per annum. The entire expansion program is expected to be completed by August 2008.  

They are planning to carry out commercial production under expansion project by September 2008. This will allow the Company to manufacture the new products range with full new capacity. Due to upward revision of installed production capacity and enlargement of production facilities, there has been delay of 3 (Three) months in implementation of expansion project. However, the same would allow the Company to augment its production in uninterrupted manner in the years to come. The upward revision in expansion of production capacities, the Company has undertaken approximate additional capital cost of Rs.290 millions. The additional capital cost shall be met with partly through strong internal cash accruals from operations and partly through long term debt from Banks. The Company enjoys a very favorable Debt Equity Ratio to raise additional Debt to meet with the additional capital requirements. This will not require the Company to dilute any further equity to meet with additional capital cost. 

AWARDS / RECOGNITION 

Last year the Company has received the prestigious 'National Excellence Award for SME' Instituted by Corporation Bank and in its journey towards achieving excellence, this year also the Company has been awarded 'Best Stall Design' award at Plumbex India 2008 an International Exhibition on Plumbing and Allied Products, organized at Mumbai in February 2008, in which there were 80 exhibitors products, displayed from 19 Countries and more than 4000 quality footfalls. This shows the commitment of the Management in the business and strong brand prominence of 'ASTRAL'. 

MANAGEMENT DISCUSSIONS AND ANALYSIS STATEMENT

Industry Structure and Developments

The Company is primarily engaged in the business of Manufacturing of CPVC/PVC (Lead free) Pipes and Fittings. Company is a leader in this segment of the business. Despite competition in the market from other units, the Company is confident of recording a sizable rate of growth in the coming years. The Company wants to provide a hygienic solution for transportation of water, which was lacking earlier in this country. Last year, the Company has recorded very high growth in both segments of business i.e. CPVC Pipes and Fittings as well as Lead Free PVC Pipes and Fittings. The overall growth of the Company was 40% in Top line and 87% in Bottom line.

OPPORTUNITIES AND THREATS

The growth in housing construction, commercial construction, malls and SEZ throughout the country offer great opportunity for the Company. The increasing brand consciousness amongst the builders, architects, plumbers and consumers will help the Company to perform better in the years ahead supported by its concerted and continued efforts in brand promotional activities. 

The increasing imports of CPVC raw material and the fluctuations in the exchange rate of foreign currency could affect the profitability of the Company. Volatility in crude prices will also affect the raw material cost of PVC/CPVC resin. 

OUTLOOK

With the Government Policies of continuing tax benefits on housing loan and increasing number of shopping malls in all towns, increasing area of retail sectors in shopping centers, constructions of various hospitals, hotels etc there is an ample opportunity to the Company for speedy growth. 

Subject continues the endeavor of increasing its efficiency in operations, thereby building sustainable competitiveness . The main thrust of the Company is on product innovation and diversification. All efforts are made to reduce cost of production to make the products more competitive in the Indian Market. The alliance with Specialty Process LLC., USA continues to play a significant role in the growth of the Company and also helps them in introduction of new products and in achieving market growth. 

Further to take the advantage of incentives available in the country, Company has already commenced its production facilities at Himachal Pradesh and is further planning to expand the capacity at Himachal Pradesh, where the Company enjoys all kinds of tax exemptions. 

To take the advantage of market, Company is continuously increasing its strong Distribution Network across all the States of the country. The Company is coming up with more products line such as Under Ground Pipes and Fittings, ABS Pipes and Fittings, SWR Pipes and Fittings, Foam Core Pipes and CPVC Blaze Master Pipes & Fittings. This will help the Company to increase its presence in all segments of building products and utilize the same channel of distribution, which presently is being used. With additions on new products line, Company will be in a position to increase both its top line and bottom line sizably. 

Company has also entered in the overseas market and started exporting its products to Nepal, Bangladesh, Srilanka and Kenya by appointing local distributors in the said countries and Company see a very good potential in overseas market. 

Further the Company has also recently launched its two new product in the Indian Market i.e. Subject 'Aquatek' ABS Pipes and Fittings and Subject 'FlowGuard Bendable' Composite Pipe and Fittings. FlowGuard Bendable pipe is having combination of Aluminum and CPVC. Company is getting very good response for both the products from the market. 

On completion of expansion of Phase - II , Company will introduce other products such as 'Astral Blaze Master', 'Astral SWR' and 'Astral Foam Core' and all these products have good and sizeable market in Indian Plumbing Sector. 

CONTINGENT LIABILITIES NOT PROVIDED FOR

Particulars	(As on 31.03.2008) Rs. In Millions
Bank Guarantees	3.144
Letters of Credit	26.597
Export Obligations under EPCG Scheme (Duty Involved)	3.569
Capital Contracts remaining to be executed	347.812

FIXED ASSETS

· Land

· Building

· Plant and Machinery

· Furniture and Fixture

· Vehicles

FORM NO. 8

1) Date and description of instrument creating the change	Common Deed of Hypothecation of Movable / Assets/ Debts dated 11-07-2002
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 25.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All present and future, stock of goods consisting of CPVC compound, CPVC fittings and stores and spares etc. which now belong to and may hereafter, during the subsistence of the Borrowings/ liability belong to the borrower and which are shall may be brought into or stored or be in / upon the borrowers premises/.Godown at Block No. 1253 village santej Taluka Kalol and or any other premises or wherever else or in course of transit or delivery to the borrower. All book debts of the company
Gist of the terms and conditions and extent and operation of the charge.	Interest at 15.5 % being 4 % over and above the Bank’s PLR which is 11.5 % at time of sanction, rising or falling with the Bank PLR
Name and Address and description of the person entitled to the charge.	Corporation Bank Rangoli Complex, 1^st Floor, Opp. V S Hospital , Ellisbridge, ashram Road, Ahmedabad- 390006
Date and brief description of instrument modifying the charge	Not Applicable
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.	Not Applicable
1) Date and description of instrument creating the change	Common Deed of Hypothecation of Movable / Assets/ Debts dated 11-07-2002
2) Amount secured by the charge/amount owing on the securities of charge	Rs. 25.000 millions
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given	All present and future, stock of goods consisting of CPVC compound, CPVC fittings and stores and spares etc. which now belong to and may hereafter, during the subsistence of the Borrowings/ liability belong to the borrower and which are shall may be brought into or stored or be in / upon the borrowers premises/.Godown at Block No. 1253 village santej Taluka Kalol and or any other premises or wherever else or in course of transit or delivery to the borrower. All book debts of the company
Gist of the terms and conditions and extent and operation of the charge.	Interest at 15.5 % being 4 % over and above the Bank’s PLR which is 11.5 % at time of sanction, rising or falling with the Bank PLR
Name and Address and description of the person entitled to the charge.	Corporation Bank Rangoli Complex, 1^st Floor, Opp. V S Hospital , Ellisbridge, ashram Road, Ahmedabad- 390006
Date and brief description of instrument modifying the charge	Extension of Equitable Mortage by way of Second Charge dated 16^th July, 2002
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.	Second charge on immovable properties being land admeasuring 8086 sq. mtrs. Forming part of Plot No. 1253, village santej Taluka Kalo, Mehsana together with building and other structures, etc, providing as additional security. Second charge ceded through constructive delivery of title deeds by according oral consent to GSFC to continued to hold and retain the title deeds for itself and as agent for corporation Bank.

WEB DETAILS

Subject is the first licencee of Lubrizol of USA (formerly known as BF Goodrich a fortune 500 company) and have equity joint venture with Specialty Process LLC of USA (manufacturing CPVC plumbing system since 25 years) to manufacture and market the most advanced CPVC plumbing system for the first time in India.

Subject was established in 1999 with a single minded purpose to manufacture absolutely the best plumbing system in India. Subject today manufactures CPVC plumbing systems for both residential and industrial applications, and also ASTM solvent weld lead free PVC plumbing system.

Subject is equipped with state of art production facilities at Ahmedabad and Himachal Pradesh to manufacture plumbing systems from ½” to 6” with all kinds of necessary fittings. The company has tie up with Specialty Process LLC of USA to incorporate latest technology and quality control programs which are widely accepted at global level and to develop CPVC plumbing systems as per Indian plumbing market.

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.48.72
UK Pound	1	Rs.82.17
Euro	1	Rs.65.90

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	YES
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		61

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

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