MIRA INFORM REPORT

Report Date :

19.04.2011

IDENTIFICATION DETAILS

Name :	ENTREMONDE POLYECOATERS LIMITED
Registered Office :	Kilfire House C-17, Dalia Industrial Area, Andheri (West), Mumbai 400053, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	20.02.1968
Com. Reg. No.:	013935
CIN No.: [Company Identification No.]	U25200MH1968PLC013935
TAN No.: [Tax Deduction & Collection Account No.]	MUME06514E
PAN No.: [Permanent Account No.]	AAACE0944L
Legal Form :	A Closely held Public Limited Liability Company
Line of Business :	Manufacturer of Coated Fabrics and Laminated Textiles

RATING & COMMENTS

MIRA’s Rating :

Ba (54)

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

Maximum Credit Limit :	USD 330000
Status :	Good
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced, respectful and resourceful businessman. Their trade relations are fair. Financial position is good. Payment are usually correct and as per commitment. The company is doing well. It can be considered good for any normal business dealings 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

LOCATIONS

Registered Office :	Kilfire House C-17, Dalia Industrial Area, Andheri (West), Mumbai 400053, Maharashtra, India
Tel. No.:	91-22-26752563
Fax No.:	91-22-26732568
E-Mail :	accounts@entremonde.com entremonde@vsnl.com
Website :	www.entremonde.com
Factory 1:	Street No. 13, C Road, Plot No. 29, MIDC Satpur, Nashik – 422 007, Maharashtra
Factory 2:	Gut No. 171, 175, 176, 177, Bombay Agra Road, Gonde (Dumala), Tal. Igatpuri, Dist. Nashik, Maharashtra

DIRECTORS

AS ON 24.09.2010

Name :	Mr. Chandrakant Khetan
Designation :	Director
Address :	170, Raval Sea View, Dr. M.B. Raut Road, Shivaji Park, Dadar, Mumbai – 400 028, Maharashtra, India
Date of Birth/Age :	24.01.1946
Experience :	AAHPK5606M
Date of Appointment :	01.04.2007
Directorship in other Company :	Polymermann (Asia) Private Limited CIN No: U24134MH2003PTC038671
Name :	Mr. Sitaram Fakirchand Khetan
Designation :	Director
Address :	32, Silver Beach, Suryavanshi Sabhagriha Marg, Off Cadell Road, Dadar, Mumbai – 400 028, Maharashtra, India
Date of Birth/Age :	09.05.1938
Qualification :	AADPK0512G
Name :	Mr. Milind Khandwe
Designation :	Director
Address :	6, Ashirwad Pride, Akashwani Tower, Gangapur Road, Nasik – 422 013, Maharashtra, India
Date of Birth/Age :	06.12.1964
Experience :	entremonde@vsnl.com
Date of Appointment :	01.04.2007
	AFKPK4229G
Name :	Mr. V.S. Khetan
Designation :	Director
Address :	Kilfire House C-17, Dalia Industrial Area, Andheri (West), Mumbai – 400 053, Maharashtra, India
Pan No :	AAGPK7601L
Name :	Mr. R.S. Khetan
Designation :	Director
Address :	Kilfire House C-17, Dalia Industrial Area, Andheri (West), Mumbai – 400 053, Maharashtra, India
Pan No :	AAGPK7606L
Date of Appointment :	01.01.1997
Name :	Mr. A.K. Mody
Designation :	Director
Address :	Kilfire House C-17, Dalia Industrial Area, Andheri (West), Mumbai – 400 053, Maharashtra, India
Pan No :	AACPM4632J
Date of Appointment :	11.03.1972

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 24.09.2010

Names of Shareholders	No. of Shares
Rita C Khetan	750
Kamala M Khetan	2000
Pooja C Khetan	2000
Shashkank C Khetan	2000
Vijay S. Khetan	2500
Shantidevi S Khetan	2700
Chitralekha S Khetan	3500
Umakant M Khetan	2800
Sheela A Bharatiya	750
Vibha U Khetan	3260
Shashi V Khetan	2200
Rajesh S Khetan	3800
Vijay and Company (HUF)	3400
Ruchi and Company (HUF)	1500
Rajesh and Company (HUF)	4000
C.U. Kant and Company (HUF)	4000
Pooja and Company (HUF)	2000
Rima and Company (HUF)	2000
Arvind K. Mody	4000
Pramoda A Mody	4010
Entremonde Exim Private Limited	30
Sonal R. Khetan	800
Total	54000

AS ON 24.09.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		85.00
Other top fifty shareholders		15.00
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Coated Fabrics and Laminated Textiles

Products :

ITC CODE	Product Description
590310.00	Coated Textiles
590320.00	Laminated Textiles

PRODUCTION STATUS

AS ON 31.03.2010

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Coated Textiles	Mtrs Mtrs Sq.Mtrs	9720000	9720000	2238884 644791* 170364
Multilayer Composites	Mtrs Sq.Mtrs	6000000	6000000	31425 469322

The capacities have been computed on 3 shift basis.

* for Input to Multilayer Composites

GENERAL INFORMATION

No. of Employees :

300 Approximately

Bankers :

Bank of India, Mumbai Corporate Banking Branch, 70/80 M.G. Road, Fort, Mumbai – 400 023, Maharashtra, India

Facilities :

SECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
From Banks :
Term Loan	27.800	27.800
Cash Credit	48.933	58.175
Notes : i) Term Loan from Bank is secured by hypothication of Plant & Machinery at Gonde. ii) Working Capital loans are secured by first charge on all current assets of the company and second charge on fixed assets of the company on pari pasu basis in addition to the personal guarantee of some of the directors.
From Others
Financial Institutions (against hypothecation of Vehicles)	0.011	0.139
Total	76.744	86.114
UNSECURED LOAN
Demand Loan from Bank	1.237	0.000
Sales tax Deferment Loan	0.037	7.301
Others (Includes loan From Director Rs.0.500 million)	1.100	8.400
Total	2.374	15.701

Banking Relations :	--
Auditors :
Name :	Dipen Doshi and Associates Chartered Accountant
Address :	Cutch Castle, Opera House, Mumbai – 400 004, Maharashtra, India
Pan No.:	AACPD2463Q
Tel No.:	91-22-23883715 / 23888012
Associates/Subsidiaries :	Polymermann (Asia) Private Limited CIN No: U24134MH2003PTC038671 Activity: Manufacturing Company Khetan Brothers Activity: Trading Company Kamalaco Activity: Trading Company Agarwal Jain and Company Activity: Trading Company Entremonder Exim Private Limited Activity: Export activities Khetan Doshi Constructions Private Limited

CAPITAL STRUCTURE

AS ON 24.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
92500	Equity Shares	Rs. 100 each	Rs. 9.250 millions
7500	13% Redeemable Cumulative Preference Shares	Rs. 100 each	Rs. 0.750 million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
54000	Equity Shares (Out of the above 27,000 Equity Shares are allotted as fully paid up bonus shares by way of capitalisation of reserves)	Rs. 100 each	Rs. 5.400 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		5.400	5.400	5.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		77.392	71.480	58.562
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		82.792	76.880	63.962
LOAN FUNDS
1] Secured Loans		76.744	86.114	54.151
2] Unsecured Loans		2.374	15.701	7.958
TOTAL BORROWING		79.118	101.815	62.109
DEFERRED TAX LIABILITIES		1.567	1.674	1.144
TOTAL		163.477	180.369	127.215
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		71.794	71.301	30.675
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		1.498	1.719	1.270
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	58.612	56.672	61.333
	Sundry Debtors	57.939	62.844	63.788
	Cash & Bank Balances	2.754	8.420	5.160
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	12.091	19.144	13.755
Total Current Assets		131.396	147.080	144.036
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	34.845	32.650	42.402
	Other Current Liabilities	0.226	0.16	0.160
	Provisions	6.140	6.921	6.204
Total Current Liabilities		41.211	39.731	48.766
Net Current Assets		90.185	107.349	95.270
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		163.477	180.369	127.215

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	340.283	434.893	361.454
		Other Income	5.768	2.536	1.801
		TOTAL (A)	346.051	437.429	363.255
Less	EXPENSES
		Manufacturing Expenses	78.685	76.958	70.040
		Raw Material Consumed	225.127	297.379	235.962
		Excise duty	20.993	31.861	33.714
		TOTAL (B)	324.805	406.198	339.716
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		21.246	31.231	23.539
Less	FINANCIAL EXPENSES (D)		7.151	8.961	6.601
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		14.095	22.270	16.938
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.369	4.217	3.227
	PROFIT BEFORE TAX (E-F) (G)		8.726	18.053	13.711
Less	TAX (H)		2.183	3.872	5.517
	PROFIT AFTER TAX (G-H) (I)		6.543	14.181	8.194
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		0.691	0.273	0.842
Less	APPROPRIATIONS
		Transfer to General Reserve	6.000	12.500	7.500
		Dividend	0.540	1.080	1.080
		Tax on Dividend	0.092	0.183	0.183
	BALANCE CARRIED TO THE B/S		0.602	0.691	0.273
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	14.774	17.945	5.377
	IMPORTS
		Raw Materials	45.139	99.146	42.119
		Plant and Machinery	2.579	32.131	0.562
		Trading	2.610	0.000	0.000
	TOTAL IMPORTS		50.328	131.277	42.681
	Earnings Per Share (Rs.)		121.17	262.63	151.75

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.89	3.24	2.25
Net Profit Margin (PBT/Sales)	(%)	2.56	4.15	3.79
Return on Total Assets (PBT/Total Assets}	(%)	4.29	8.26	7.84
Return on Investment (ROI) (PBT/Networth)		0.10	0.23	0.21
Debt Equity Ratio (Total Liability/Networth)		1.47	1.86	1.75
Current Ratio (Current Asset/Current Liability)		3.18	3.70	2.95

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS REVIEW

Sales and other income of the Company decreased by 20.89 per cent from Rs 437.430 millions in 2008-09 to Rs 346.052 millions in 2009-10. Profit Before Interest, Depreciation and Tax decreased by 31.97 per cent from Rs 31.231 millions in 2008-09 to Rs 21.245 millions in 2009-10. During the year, there was reduction in government defense expenditure has resulted in lower sales and profitability.

OUTLOOK

In the current year the Company is not optimistic about sales and profitability and also the fire has resulted in to loss of production of specific products.

FIXED ASSETS

• Land – Freehold
• Leasehold
• Factory Building
• Office and Residential Premises
• Plant and Machinery
• Embossing Rollers
• Electrical Installation
• Furniture and fixtures
• Office Equipments
• Fcatory Equipments
• Laboratory Equipments
• Vehicles
• Computers
• Airconditioner
• Trademark

FORM 8

Corporate identity number of the company	U25200MH1968PLC013935
Name of the company	ENTREMONDE POLYECOATERS LIMITED
Address of the registered office or of the principal place of business in India of the company	Kilfire House C-17, Dalia Industrial Area, Andheri (West), Mumbai 400053, Maharashtra, India
This form is for	Creation of charge
Type of charge	Book debts Movable property (not being pledge) Floating charge
Particular of charge holder	Bank of India, Mumbai Corporate Banking Branch, 70/80 M.G. Road, Fort, Mumbai – 400 023, Maharashtra, India Email: vlaxman@vsnl.com
Nature of instrument creating charge	Hypothecation Cum Loan Agreement (Plant & Machinery, Stocks and Book Debts).
Date of instrument Creating the charge	09.08.2010
Amount secured by the charge	Rs. 10.000 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Interest 12.25% p.a. with monthly rests. Terms of repayment On demand Margin 30% against Raw Material, Finished Goods. 40% against stores, Book-Debts outstanding of 2 or 3 months. Extent and operation of the charge Hypothecation by way of First Charge on Company's Stocks, Book Debts, Plant and Machinery, to secure as a Continuing Security for repayment of Rs.10.000 millions, by the Company to the Bank with interest/commission, charges, costs and expenses.
Short particulars of the property charged (Including location of the property)	i) All tangible movable machineries and plants (both Present and future) whether installed or not and whether lying loose or at site or in transit or which may at any time during the continuance of this security being installed or lying loose or in cases or being in or upon or about the Borrower’s premises/godowns at Satpur and Gonde etc. or wherever else the same may be or be held by any party anywhere to the order and disposition of the Borrower or in the course of transit to the Borrower. ii) All tangible movable properties and assets and stocks, whatsoever nature of the Borrower (both present and future) and including but without prejudice to the generality of the foregoing all stocks of raw materials such as Plastic, Lubricants, Leather Cloth paper interlinings tarapavelin, inflamable teat materials, decorative papers, PVC, resin, aluminized and polyester etc. Finished goods such as PVC coated fabrics and Semi Finished goods, spare parts, components (including spare parts and stores relating to plant and machinery both present and future) and stocks in process of the Borrower wheresoever situate at Satpur & Gonde and/or in transit now belonging to or that may at any time during the continuance of its security belong to the Borrower or that may be held by any party to the Order and disposition of Borrower; and iii) All the present and future book-debts, outstanding, money receivables, claims, bills which are now due and owing or which may at any time hereafter during the continuance of this security become due and owing or to the Borrower in the course of his business by any person, firm, company or body corporate or by the Central Government or any State Government or any Government Department or office or any municipal or local or public or semi-governmental body or authority or any body corporate or undertaking or project whatsoever.

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.44.27
UK Pound	1	Rs.72.08
Euro	1	Rs.63.66

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	6
--PROFITABILIRY	1~10	6
--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	NO
--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	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.