MIRA INFORM REPORT

Report Date :

05.04.2011

IDENTIFICATION DETAILS

Name :	POLYBOND ORGANICS PRIVATE LIMITED
Registered Office :	4 and 5, 4^th Floor, Narang Chambers, 99/3, N R Road, Bangalore – 560002, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	28.07.1993
Com. Reg. No.:	014591
CIN No.: [Company Identification No.]	U61100KA1993PTC014591
Legal Form :	Private Limited Liability Company
Line of Business :	Trader of Insulation Materials, Adhesives and other related products.

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 195528
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INFORMATION PARTED BY

Name :	Mr. Girish
Designation :	Accounts Manager
Contact No.:	91-80-40804900
Date :	02.04.2011

LOCATIONS

Registered Office :	4 and 5, 4^th Floor, Narang Chambers, 99/3, N R Road, Bangalore – 560002, Karnataka, India
Tel. No.:	91-80-40804900
Fax No.:	91-80-22226873/41531432
E-Mail :	polybond@vsnl.com polybondblr@gmail.com
Location :	Owned
Branches :	#93/1, Ground Floor, Karmibai Nivas, Guru Govind Sigh Road, Near Chheda Petrol Pump, Off LBS Marg, Mulund West – 400082, Maharashtra, India
Tel. No.:	91-22-25926130/25920005
Fax No.:	91-22-25926111
E-Mail :	bvjbaliga@gmail.com
Location :	Rented

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Dinesh Baliga
Designation :	Managing Director
Address :	1268, Mico Workers Layout, 15^th Main, 7^th Cross, II Stage, BTM Layout, Bangalore – 560076
Date of Birth/Age :	29.01.1955
Qualification :	BSC, DPS, DMM
Experience :	31 years
Date of Appointment :	28.07.1993
Name :	Mr. Harish V Baliga
Designation :	Director
Address :	1267, Ganaraj 10^th Main, BTM Layout II Stage, 1 Phase, BTM Layout, Bangalore – 560076
Date of Birth/Age :	13.05.1957
Qualification :	B Tech (MET)
Experience :	31 years
Date of Appointment :	28.07.1993
Name :	Mr. Balkrishna V Baliga
Designation :	Director
Address :	#35, Venkataan Layout, 4^th Cross, Doresanipalya Bannerghatta Road, Bangalore – 560073, Karnataka, India
Date of Birth/Age :	22.10.1943
Qualification :	BSC, LLB, CAIIB
Experience :	21 years
Date of Appointment :	28.07.1993
Name :	Ms. Divya D Baliga
Designation :	Director
Address :	1268, Ganaraj 15^th Main, II Stage, BTM Layout, Bangalore – 560076
Date of Birth/Age :	04.10.1963
Date of Appointment :	01.01.1996
Name :	Ms. Sandhya H Baliga
Designation :	Director
Address :	1267, Ganaraj 15^th Main, II Stage, BTM Layout, Bangalore – 560076
Date of Birth/Age :	15.11.1962
Date of Appointment :	01.01.1996
Name :	Mr. Prakash Baliga
Designation :	Director
Address :	99, Rolling Brook Drive, Edison NJ – 088204431 United States of America
Date of Birth/Age :	09.05.1951
Date of Appointment :	15.04.1996
Name :	Mr. Jagdish Bantwal Vasudev Baliga
Designation :	Whole Time Director
Address :	Flat No.204, Ratanshree Tower – I, Millenium Park, Hari Om Nagar, Mulund East, Mumbai – 400081, Maharashtra, India
Date of Birth/Age :	10.02.1949
Qualification :	DEE
Experience :	31 years
Date of Appointment :	01.02.1999
Name :	Mr. Nelamangala Vruddi Pavan Ram
Designation :	Director
Address :	151/4, Shiv Ashish Manjunatha Road, II Block, Thyagaraj Nagar, Bangalore - 560028
Date of Birth/Age :	19.06.1959
Date of Appointment :	15.04.1996

KEY EXECUTIVES

Name :	Mr. Girish
Designation :	Accounts Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Dinesh Baliga	51610
Harish V Baliga	24020
Balkrishna V Baliga	38015
Snehalatha B Baliga	595
Sandhya H Baliga	15554
Prakash Baliga	41810
Nelamangala Vruddi Pavan Ram	4770
Divya D Baliga	11492
Jagdish Bantwal Vasudev Baliga	12134
Total	200000

AS ON 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Trader of Insulation Materials, Adhesives and other related products.
Imports :
Products :	Raw Material
Countries :	United Kingdom Korea Singapore
Terms :
Selling :	L/C
Purchasing :	L/C, Credit (60 days)

GENERAL INFORMATION

Customers :

• Industries
• Institution
• Organization

No. of Employees :

70

Bankers :

• Canara Bank, Town Hall Branch, Stock Exchange Towers, Bangalore - 560027, Karnataka, India
• ICICI Home Finance Company Limited, Industrail Area, Koramangla , Bangalore - 560034, Karnataka, INDIA

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Open Cash Credit (Secured by hypothecation of Stock and Book Debts)	72.163	27.640
Overdraft Against Fixed Deposit (Against Pledge of Fixed Deposit)	1.481	0.228
Other Working Capital Loan (Secured by hypothecation of Stock)	18.219	0.000
Term Loan (Secured by hypothecation / Mortgage of Respective Assets)	14.057	13.556
Total	105.921	41.485
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Banks	6.046	3.237
From Directors	3.446	1.46
From Directors/Shareholders	16.472	16.194
Total	25.965	20.877

Banking Relations :	--
Auditors :
Name :	K Venkatesh Snenoy and Company Chartered Accountant
Address :	No.57, First Floor, 7^th Cross, Sampige, Malleshwaram, Bangalore – 560003, Karnataka, India
Associates/Subsidiaries :	NA

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs.100/- each	Rs.20.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		20.000	20.000	3.760
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		28.882	19.608	11.091
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		48.882	39.608	14.851
LOAN FUNDS
1] Secured Loans		105.921	41.485	36.366
2] Unsecured Loans		25.965	20.877	14.864
TOTAL BORROWING		131.886	62.362	51.230
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		180.768	101.970	66.081
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		21.851	19.150	18.982
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.632	1.626	0.607
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	103.716	200.925	52.985
	Sundry Debtors	83.785	39.052	58.637
	Cash & Bank Balances	26.225	21.304	12.132
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	34.998	18.653	11.946
Total Current Assets		248.724	279.934	135.700
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	0.000	0.000	0.000
	Other Current Liabilities	68.994	200.025	83.731
	Provisions	21.445	8.715	5.477
Total Current Liabilities		90.439	208.740	89.208
Net Current Assets		158.285	71.194	46.492
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		180.768	101.970	66.081

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	410.953	NA	NA
		Other Income	9.825	NA	NA
		TOTAL	420.778	NA	NA
Less	EXPENSES
		TOTAL	397.780	NA	NA
	PROFIT BEFORE TAX		22.998	NA	NA
Less	TAX		7.894	NA	NA
	PROFIT AFTER TAX		15.104	NA	NA
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	0.835	NA	1.024
	TOTAL EARNINGS		0.835	NA	1.024
	IMPORTS
		Raw Materials	85.669	134.807	56.575
	TOTAL IMPORTS		85.669	134.807	56.575
	Earnings Per Share (Rs.)		148.59	--	--

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	3.59	NA	NA
Net Profit Margin (PBT/Sales)	(%)	5.59	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	8.50	NA	NA
Return on Investment (ROI) (PBT/Networth)		0.47	NA	NA
Debt Equity Ratio (Total Liability/Networth)		4.55	6.84	9.46
Current Ratio (Current Asset/Current Liability)		2.75	1.34	1.52

LOCAL AGENCY FURTHER INFORMATION

Sundry Creditors Details:

Sundry Creditors are not available

From 8:

Corporate identity number of the company	U61100KA1993PTC014591
Name of the company	POLYBOND ORGANICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.4 and 5,4th Floor, Narang. Chambers 99/3, N.R.Road, Bangalore - 560002, Karnataka, India
This form is for	Creation of charge
Type of charge	Book Debts Movable Property
Particular of charge holder	CANARA BANK
Nature of instrument creating charge	Common Hypothecation Agreement
Date of instrument Creating the charge	07/08/2010
Amount secured by the charge	Rs.436.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest @ 4.75% above PLR with a Minimum of 12.75% p.a. for OCC and for BULC 8% (OCC-Rs.30.000 Millions / BULC-Rs.186.500 Millions / BG-Rs.40.000 Millions / IC/FLC-Rs.180.000 Millions) Terms of Repayment Repayable on Demand Margin Margin 25% Extent and Operation of the charge 100% Till the Closure of the loan Others
Short particulars of the property charged	Hypothecation of all the Present and Future Stocks & Book Debts etc., belonging to the Company.

Trade References:

• Project Completed for Aurangabad Airport
• Ahmedabad Airport

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.44.65
UK Pound	1	Rs.71.92
Euro	1	Rs.63.24

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.