MIRA INFORM REPORT

Report Date :

25.04.2011

IDENTIFICATION DETAILS

Name :	POLSON LIMITED
Registered Office :	Ambaghat, Vishalgad, Taluka Shahuwadi, Kolhapur – 415 101, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	21.12.1938
Com. Reg. No.:	002879
CIN No.: [Company Identification No.]	L15203PN1938PLC002879
TAN No.: [Tax Deduction & Collection Account No.]	MUMP07909G/ MUMP16795C
PAN No.: [Permanent Account No.]	AAACP4597Q
Legal Form :	Public Limited Liability Company. Company’s Shares are not Traded at the Stock Exchange.
Line of Business :	Manufacturer of Vegetable Tannin Extracts and Toll, Synthetic Tanning Agents, Fat Liquors and Intermediates for the Leather Chemical Industry.

RATING & COMMENTS

MIRA’s Rating :

Ba (53)

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

Maximum Credit Limit :	USD 752000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having fine track. General financial position is good. Trade relations are reported as fair. Business is active. Payments are reported o be correct and as per commitments. The company can be considered normal for 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

INFORMATION PARTED BY

Name :	Ms. Swati
Designation :	Accounts Manager
Contact No.:	91-22-22822322
Date :	23.04.2011

LOCATIONS

Registered Office :	Ambaghat, Vishalgad, Taluka Shahuwadi, Kolhapur – 415 101, Maharashtra, India
Tel. No.:	91-2329-264844 / 264762
Fax No.:	91-2329-264954
E-Mail :	polsonltd@gmail.com mca1234@gmail.com accounts@polsonltd.com
Website :	http://www.polsonltd.com
Area :	5000 sq.ft
Location :	Owned
Corporate Office :	3^rd Floor, Cambatta Building, (Eros Cinema Building), South West Wing 42, M Karve Road, Mumbai – 400 020, Maharashtra, India
Tel. No.:	91-22-22822322/ 22822321/ 22822325
Fax No.:	91-22-22822325
Factory :	Located at: · Outskirts of Kolhapur Town, Maharashtra, India
Area :	14 Acres

DIRECTORS

AS ON AS ON 27.09.2010

Name :	Mr. Jagdish Kapadia
Designation :	Chairman
Date of Birth/Age :	10.02.1929
Date of Appointment :	20.06.1970
Name :	Mr. Amol Kapadia
Designation :	Managing Director
Date of Birth/Age :	08.12.1965
Date of Appointment :	29.12.1987
Name :	Ms. Sushila Kapadia
Designation :	Director
Date of Birth/Age :	27.09.1932
Date of Appointment :	07.03.1981
Name :	Mr. Pravin Samant
Designation :	Whole-time Director
Date of Birth/Age :	30.08.1954
Date of Appointment :	01.08.2008
Name :	Mr. Dhau Lambore
Designation :	Whole-time Director
Date of Birth/Age :	01.03.1950
Date of Appointment :	12.05.2008

KEY EXECUTIVES

Name :	Ms. Swati
Designation :	Accountant
Name :	Mr. Ganesh
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.06.2010

Category of Shareholder	Total No. of Shares	% of total No. of Shares
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	27,987	23.32
Bodies Corporate	73,189	60.99
Sub Total	101,176	84.31
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	101,176	84.31
(B) Public Shareholding
(1) Institutions
Financial Institutions / Banks	410	0.34
Sub Total	410	0.34
(2) Non-Institutions
Bodies Corporate	159	0.13
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	17,976	14.98
Any Others (Specify)	279	0.23
NRIs/OCBs	221	0.18
Trusts	58	0.05
Sub Total	18,414	15.35
Total Public shareholding (B)	18,824	15.69
Total (A)+(B)	120,000	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	120,000	100.00

AS ON AS ON 27.09.2010

Equity Share Breakup		Percentage of Holding
Category
Bodies corporate		61.12
Directors or relatives of directors		23.32
Other top fifty shareholders		4.72
Others		10.54
	Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Vegetable Tannin Extracts and Toll, Synthetic Tanning Agents, Fat Liquors and Intermediates for the Leather Chemical Industry.

Products:

ITC Code	Product Descriptions
3201 Sub Entry 96.02	Tannin Extract Organic and Inorganic Chemicals

Exports :

Products :

Leather Chemical

Countries :

Taiwan, Spain, Italy, Singapore, Netherland, Germany

Terms :

Selling :

L/C, Cash, Credit (30-60-90 Days)

Purchasing :

Cash, Credit (30-60-90 Days)

PRODUCTION STATUS

AS ON 31.03.2010

Particulars	Unit	Installed Capacity	Actual Production
Vegetable and Chemical Tannin Products	MT	18000	12829

GENERAL INFORMATION

Customers:

· End Users

· OEM’s

No. of Employees :

300 Approximately

Bankers :

Kotak Mahindra Bank, 36-38, Nariman Bhavan, 227 D, Nariman Point Branch, Mumabi 400021, Maharashtra, India

Facilities:

Cash Credit Rs. 46.000 millions (Kotak Mahindra Bank)

SECURED LOAN	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Cash credit and Packing credit with bank	71.356	47.458
Export Bills Discounted/Purchased by Bank	9.022	0.000
(Both the above are secured by hypothecation of stock of raw material and finished goods, book debts, and equitable mortgage of land and building by deposit of title deeds) Term Loan (Equitable mortgage of Land, Building, Machinery)	28.763	23.209
Vehicle Loan ( Secured by 6.Vehicles)	0.000	0.000
Term Loan ( Secured against Ownershit3 Flat at Mumbai)	33.202	42.569
LIC Loan against the Keyman Insurance Policy	15.796	12.079
TOTAL	158.139	125.315
UNSECURED LOAN
From Directors	1.660	0.000
From Companies Under the same Management	20.400	4.175
23774 0% Bonds of Rs. I000 each (Convertible on 25-3-2030)	23.774	23.774
Loan from Others	0.000	0.000
TOTAL	45.834	27.949

Banking Relations :	--
Auditors :
Name :	A.S. Madon and Company Chartered Accountants
Address :	79-80, 2^nd Floor, Esplande Mansion, 144, M G Road, Fort, Mumbai 400023, Maharashtra, India
Holding Company:	AJI Commercial Private Limited CIN No.: U51900MH1992PTC066518

CAPITAL STRUCTURE

AS ON 27.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs. 50 each	Rs.10.000 millions
50000	6% Cumulative Redeemable Preference Shares	Rs. 100 each	Rs. 5.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
20000	Equity Shares against Preference Shares	Rs. 50 each	Rs.1.000 millions
73145	Equity Share	Rs. 50 each	Rs. 3.657 millions
5000	Equity Shares (issued pursuant to a contract, without the payment being received in cash)	Rs. 50 each	Rs. 0.250 million
21855	Equity Shares (alloted as Bonus Shares issued by way of Capitalisation of Reserve)	Rs. 50 each	Rs. 1.093 millions
			Rs. 6.000 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		6.000	6.000	6.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		182.080	133.873	112.959
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		188.080	139.873	118.959
LOAN FUNDS
1] Secured Loans		158.139	125.315	126.801
2] Unsecured Loans		45.834	27.949	23.774
TOTAL BORROWING		203.973	153.264	150.575
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		392.053	293.137	269.534
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		145.526	107.757	110.819
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.042	0.042	0.043
DEFERREX TAX ASSETS		1.833	1.759	1.186
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	88.666	65.603	69.778
	Sundry Debtors	82.115	50.531	78.533
	Cash & Bank Balances	16.137	21.756	11.324
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	193.283	107.565	104.623
Total Current Assets		380.201	245.455	264.258
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	69.051	30.061	76.513
	Other Current Liabilities	14.160	2.673	11.619
	Provisions	52.338	29.142	18.640
Total Current Liabilities		135.549	61.876	106.772
Net Current Assets		244.652	183.579	157.486
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		392.053	293.137	269.534

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Operating Income	596.209	428.679	516.901
		TOTAL	596.209	428.679	516.901
Less	EXPENSES
		Directs Expenses	455.034	317.008	438.948
		Indirect Expenses	80.069	83.512	62.027
		TOTAL	535.103	400.520	500.975
	OPERATING PROFIT		61.106	28.159	15.926
Add	NON OPERATING INCOME		12.047	4.786	7.965
	PROFIT BEFORE TAX		73.153	32.945	23.891
Less	TAX		24.477	11.523	8.410
	PROFIT AFTER TAX		48.676	21.422	15.481
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		111.403	93.194	81.238
Less	APPROPRIATIONS
	Transfer to General Reserve 15 %		7.301	3.213	2.322
Add	EXCESS / (SHORT) OF TAX OVER PROVISION		0.000	0.000	(1.203)
	BALANCE CARRIED TO THE B/S		152.778	111.403	93.194
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	123.708	83.482	125.952
	IMPORTS
		Raw Materials	0.000	22.696	3.655
	Earnings Per Share (Rs.)		405.63	--	--

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	171.800	214.100	195.700
Total Expenditure	148.400	182.300	160.500
PBIDT (Excl OI)	23.400	31.800	35.200
Other Income	0.000	0.000	0.000
Operating Profit	23.400	31.800	35.200
Interest	5.500	5.800	5.300
Exceptional Items	0.000	0.000	0.000
PBDT	17.900	26.000	29.900
Depreciation	3.000	3.000	3.000
Profit Before Tax	14.900	23.000	26.900
Tax	4.900	7.600	8.900
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	10.000	15.400	18.000
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	10.000	15.000	18.000

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	8.16	4.99	2.99
Net Profit Margin (PBT/Sales)	(%)	12.26	7.68	4.62
Return on Total Assets (PBT/Total Assets}	(%)	13.91	9.32	6.36
Return on Investment (ROI) (PBT/Networth)		0.38	0.23	0.20
Debt Equity Ratio (Total Liability/Networth)		1.80	1.53	2.16
Current Ratio (Current Asset/Current Liability)		2.80	3.96	2.47

LOCAL AGENCY FURTHER INFORMATION

OPERATIONS

During the year the Company has achieved a turnover of Rs. 608.257 millions against Rs. 433.466 millions for the previous year and net profit for the year is Rs.48.676 millions against Rs.21.422 millions for the previous year.

SUNDRY CREDITORS DETAILS:

Rs. In Millions

Particulars	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors	69.051	30.061	76.513

FIXED ASSETS:

• Land
• Building
• Oil Tank
• Plant and Machinery
• Electrical Installations
• Furniture and Fixture
• Office Appliances
• Office Equipments
• Laboratories
• Motor Car
• Pipe Line
• Agri Machinery
• Pattern
• Deep Tube Wall
• Computer and Printer
• Good Will

FORM 8

Corporate identity number of the company	L15203PN1938PLC002879
Name of the company	POLSON LIMITED
Address of the registered office or of the principal place of business in India of the company	Ambaghat, Vishalgad, Taluka Shahuwadi, Kolhapur – 415 101, Maharashtra, India
This form is for	Creation of charge
Type of charge	Immovable property
Particular of charge holder	Religare Finvest Limited Address: D3, P3B, District Centre, Saket, New Delhi 110017, India Email: corporateaffairs@religare.in
Nature of instrument creating charge	Loan Against Immovable Property
Date of instrument Creating the charge	26.02.2011
Amount secured by the charge	Rs. 8.890 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest Rate of interest is 14.00%. Religare Floating reference rate per annum is 18.0% - 4.0% = 14.00% p.a Terms of repayment Repayment is 120 Months and EMI is 0.138 million Margin As determined by bank Extent and operation of the charge The Charge Covers Santion Credit Facility Along With Interest,Penal Ineterst and Other Charges
Short particulars of the property charged (Including location of the property)	D no.10 and 43, Loordhu Madha Street,Nagelkeni ( Thiruneermalai Road) , Chrompet, Chennai 600044.

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.44.30
UK Pound	1	Rs.72.92
Euro	1	Rs.64.69

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		53

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.