MIRA INFORM REPORT

Report Date :

20.01.2011

IDENTIFICATION DETAILS

Name :	MUSCAT POLYMERS PRIVATE LIMITED
Registered Office :	212, Aditya Centre, 1^st Floor, Phulchhab Chowk, Rajkot – 360001, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	01.02.1994
Com. Reg. No.:	04-021183
CIN No.: [Company Identification No.]	U17119GJ1994PTC021183
TAN No.: [Tax Deduction & Collection Account No.]	RKTM00062G
PAN No.: [Permanent Account No.]	AADFM3725D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of PP and HDPE Woven Sacks / Bags, used for Packing, of Cement, Fertilizer, Salt, Minerals, Chemicals, etc

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 221356
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However trade relations are reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.

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. Ketan Malvia
Designation :	Accountant
Date :	18.01.2011

LOCATIONS

Registered Office :	212, Aditya Centre, 1^st Floor, Phulchhab Chowk, Rajkot – 360001, Gujarat, India
Tel. No.:	91-281-2448970 / 2447642
Mobile No.:	91-9825218959 (Mr. Niraj Joshi)
Fax No.:	91-281-2476118
E-Mail :	jignesh_pandya@muscatpolymers.com ca@rkdoshi.com sales@muscatpolymers.com info@muscatpolymers.com
Website :	www.muscatpolymers.com www.muscat.tradeindia.com
Area :	700 sq.ft
Location :	Owned
Work :	Gundasari Road, Opp. Railway Crossing, Veraval (Shapar), Taluka: Kotda – Sangani, Dist; Rajkot, Gujarat, India
Telefax No.:	91-2827-253203
E-Mail :	niraj_doshi@muscatpolymers.com
Location :	Owned
Consignment Stockiest :	110, Aditya Centre, 1^st Floor, Phulchhab Chowk, Rajkot – 360001, Gujarat, India
Tel. No.:	91-281-2450400
Fax No.:	91-281-2476118
E-Mail :	piyush_gajera@muscatpolymers.com
Administrative Office :	3^rd Floor Aditya Centre, Phulchhab Chowk, Rajkot – 360001, Gujarat, India
Tel. No.:	91-281-2448970 / 2447642 / 2478524
Fax No.:	91-281-2476118
Location :	Rented

DIRECTORS

AS ON 30.09.2010

Name :	Mr. Madhukarbhai Minaxiben Kothary
Designation :	Director
Address :	Mumtaz Area, Villa No. 77, Post Box No. 66, Muscat (Oman)
Date of Birth :	27.04.1950
Date of Appointment :	01.04.1998
Name :	Mr. Kishorebhai Rajivbhai Doshi
Designation :	Director
Address :	Sonira, 1 – Tagore Nagar, Kalawad Road, Rajkot – 360001, Gujarat
Date of Birth :	26.12.1956
Date of Appointment :	01.04.1998
Name :	Mr. Kishorebhai Nirajbhai Doshi
Designation :	Director
Address :	Sonira, 1 – Tagore Nagar, Kalawad Road, Rajkot – 360001, Gujarat
Date of Birth :	29.12.1969
Date of Appointment :	01.04.1998
Name :	Mr. Madhukarbhai Vishalbhai Kothary
Designation :	Director
Address :	Mumtaz Area, Villa No. 77, Post Box No. 66, Muscat (Oman)
Date of Birth :	28.06.1973
Date of Appointment :	01.04.1994
Name :	Mr. Ramnikbhai Madhukarbhai Kothary
Designation :	Director
Address :	Mumtaz Area, Villa No. 77, Post Box No. 66, Muscat (Oman)
Date of Birth :	13.07.1947
Date of Appointment :	29.09.1997
Name :	Mr. Piyush Ramjibhai Gajera
Designation :	Director
Date of Appointment :	01.01.2006

KEY EXECUTIVES

Name :	Mr. Ketan Malvia
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2010

Names of Shareholders	No. of Shares
Mr. Nirajbhai Doshi	10
Mr. Kothari Vishal	100
Mr. Kothary Madhukarbhai	327870
Mr. Kothanry Minaxiben	105200
Mr. Bavabhai Gajera	10
Mr. Dilipbhai Khakhar	10
Mr. Jagdishbhai Khakhar	10
Mr. Sharadbhai DSheth	10
Mr. Kantilal Shah	10
Mrs. Kritika J Khakhar	10
Mr. kishore P Doshi	10
Mr. Prabhakar Khakhar	10
Mrs. Sonalben Sheth	10
Mr. Piyushbhai Gajera	10
Total	433280

AS ON 30.09.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		100.00
	Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of PP and HDPE Woven Sacks / Bags, used for Packing, of Cement, Fertilizer, Salt, Minerals, Chemicals, etc
Products :	Woven Sacks: HDPE & PP Woven Bags/ Sacks in various application specific requirement for packing of goods weighing from 25 to 100 kg. These sacks are economically effective, friendly to human health, and comply with I.L.O. norms of 50 kg or less packing. Fabrics: The Fabric can be Tubular (up to 160 cm.) or flat, Plain or laminated (one or both side). This can be supplied in various colours, milky white or transparent and U.V. Tarpaulin: Their Poly Tarpaulin is made of High Density Polythene (HDPE) Fabric and Low Density (LDPE) Coating on both side. They avail PE Tarpaulin in different colours and special sizes to suit the application/ requirements.
Exports :
Products :	PP Bags
Countries :	Spain Germany
Imports :
Products :	Raw Material
Countries :	Taiwan
Terms :
Selling :	L/C, Cash, Credit (30-60-90 Days)
Purchasing :	L/C, Cash, Credit (30-60-90 Days)

PRODUCTION STATUS AS ON 31.03.2010

Particulars	Unit	Actual Production
H D P E / PP Woven Sacks and Bags	Nos.	21920560
Fabrics	Kgs.	159219
Job Work Done by us	Kgs. Nos.	7214.10

Note:

1. Installed capacity has not been disclosed, as these are variable and subject to changes in product mix, and utilization of manufacturing facilities, given the nature of operations.
2. Includes production on Job work basis of 7,37,181 Bags. (Previous Year: 9,29,077 Bags).
3. Excluding captive consumption. Fabric produced is sold as finished goods as well as captively consumed for production of woven sacks/bags.

GENERAL INFORMATION

Customers :

Retailers, End Users and OEM’s

² Hathi Cement

² Shree Cement Limited

² Sanghi Cement

² Ambuja Cement

² Siddhi Cement

² Corporates

No. of Employees :

400

Bankers :

v Development Credit Bank Limited

301, Trade Plaza, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025, Maharashtra

E –Mail: rakeshkothiya@dcbl.com

v ICICI Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
CASH CREDIT
From Development Credit Bank Limited (Secured by hypothecation of stock and book debts, Plant and Machinery and mortgage of Factory Building)	58.138	52.013
From ICICI Bank Limited	6.524	0.000
TERM LOAN
From Development Credit Bank Limited (Secured by hypothecation of Plant and Machinery and mortgage of Factory Building)	26.855	4.281
Total	91.518	56.294
Unsecured Loan	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
From Directors	5.724	3.754
From Shareholders	44.842	20.810
Inter Corporate	0.038	0.038
Total	50.604	24.602

Banking Relations :	--
Auditors :
Name :	Kotecha and Associates Chartered Accountants
Address :	Krishna Kutir, Opposite S.T. Taxi Stand, Dhebarbhai Road, Rajkot – 360001, Gujarat
Associates/Subsidiaries :	Nil

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs.50.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
433280	Equity Shares	Rs.100/- each	Rs.43.328 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		43.328	43.328	43.328
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		12.011	12.427	11.321
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		55.339	55.755	54.649
LOAN FUNDS
1] Secured Loans		91.518	56.294	49.462
2] Unsecured Loans		50.604	24.602	23.713
TOTAL BORROWING		142.122	80.896	73.175
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		197.461	136.651	127.824
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		82.127	40.621	40.212
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	30.275	17.917	17.949
	Sundry Debtors	116.078	76.164	80.578
	Cash & Bank Balances	10.683	16.445	8.066
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.698	8.281	9.906
Total Current Assets		161.734	118.807	116.499
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35.795	13.802	23.246
	Others Current Liabilities	2.332	1.432	0.000
	Provisions	8.273	7.543	5.641
Total Current Liabilities		46.400	22.777	28.887
Net Current Assets		115.334	96.030	87.612
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		197.461	136.651	127.824

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income and Other Income	457.752	238.265	170.746
		TOTAL (A)	457.752	238.265	170.746
Less	EXPENSES
		Material Cost	390.071	180.829	126.397
		Manufacturing Expenses	14.760	13.774	12.570
		Payment to Employee	16.352	16.262	10.760
		Administrative, Selling & Other Expenses	13.250	10.373	8.127
		Loss on sale	0.000	0.000	0.027
		Increase( - ) / Decrease(+) in Stock	1.541	(0.865)	(0.964)
		TOTAL (B)	435.974	220.373	156.917
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		21.778	17.892	13.829
Less	FINANCIAL EXPENSES (D)		12.679	10.704	7.845
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		9.099	7.188	5.984
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.216	2.976	2.876
	PROFIT BEFORE TAX (E-F) (G)		5.883	4.212	3.108
Less	TAX (I)		1.247	0.572	0.360
	PROFIT AFTER TAX (G-I) (J)		4.636	3.640	2.748
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		12.427	11.321	11.108
	BALANCE CARRIED TO THE B/S		12.011	12.427	11.321
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	48.500	60.097	19.093
	TOTAL EARNINGS		48.500	60.097	19.093
	IMPORTS
		Raw Materials	17.960	4.969	4.519
	TOTAL IMPORTS		17.960	4.696	4.519
	Earnings Per Share (Rs.)		10.70	--	--

Expected Sales (2010-2011) : Rs. 800.000 Millions

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	1.01	1.53	1.61
Net Profit Margin (PBT/Sales)	(%)	1.28	1.77	1.82
Return on Total Assets (PBT/Total Assets}	(%)	2.41	2.64	1.98
Return on Investment (ROI) (PBT/Networth)		0.11	0.07	0.06
Debt Equity Ratio (Total Liability/Networth)		3.41	1.85	1.86
Current Ratio (Current Asset/Current Liability)		3.48	5.21	4.03

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The registered office address of the company is shifted from Toral Complex, Opp State Bank of Saurashtra, B/S Shastrimandi R, Rajkot, Gujarat, India to present w.e.f. 15.06.2006

FORM 8

Name of the company	MUSCAT POLYMERS PRIVATE LIMITED
Presented By	Shri Rajiv K. Doshi, Director
1) Date and description of instrument creating the change	Deed of hypothecation – 09.01.2006
2) Amount secured by the charge/amount owing on the securities of charge	Facility Limit CC 13.000 L/C Bill Discounting 5.000 LC 5.000 Bank Guarantee 20.000
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	1. Exclusive charge in favour of the bank by way of hypothecation of the company’s entire stock of raw materials, semi finished and finished goods, consumable stores and spares and such other movable including book debts, bills whether documentary or clean outstanding monies, receivable, both present and future in a form and manner satisfactory to the bank 2. First exclusive charge on all the company’s movable assets, including plant and machinery both present and future.
4) Gist of the terms and conditions and extent and operation of the charge.	Facility Rate of Interest CC 9.25 p.a L/C Bill Discounting 8.50 p.a. LC 1.00 p.a. Bank Guarantee 1.00 p.a
5) Name and Address and description of the person entitled to the charge.	Development Credit Bank Limited C.G. Road, Ahmedabad

Corporate identity number of the company	U17119GJ1994PTC021183
Name of the company	MUSCAT POLYMERS PRIVATE LTD
Address of the registered office or of the principal place of business in India of the company	212, Aditya Center, Phulchhab Chowk, Rajkot – 360001, Gujarat, India
This form is for	Modification of charge
Type of charge	Book Debts Movable Property
Particular of charge holder	DEVELOPMENT CREDIT BANK LIMITED
Nature of instrument creating charge	Supplemental Deed of Hypothecation dated 29.12.2009 for enhanced Credit Facilities of Rs. 150.181 Millions (Enhanced from Rs. 89.231 Millions.)
Date of instrument Creating the charge	29/12/2009
Amount secured by the charge	Rs.150.181 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest (1). C.C (Mfg) : 12.25% p.a. (2). C.C ( Trading Division): 12.25% p.a. (3). EPC : 11.50% (4). FDBP: 11.50% (5). Term Loan 1 :- 12.25% (6)T.L II (renewal) :-12.25% (7) T.L.III (New) 12.25% Terms of Repayment 1. Cash Credit (Mfg) : on demand /Annual Review 2. Cash Credit ( Trading Division): on demand /Annual Review 3. EPC : on respective due dates /Annual Review 4. Inland L.C.: on respective due dates /Annual Review 5. B.G. : on respective due dates/ cancellation / Expiry of B.G./ Annual Review 6. FDBP: on respective due dates /Annual Review 7. Forward Contract Booking: on respective due dates /Annual Review 8. Term Loan I&II : on demand Existing term 9 Term Loan III 20 Quarterly Instalment Margin 1.Cash Credit ( Mfg Div) =25% of Stock & 40% of Book debts 2.Inland LC = 10% in FDR 3.Bank Gurantee = 10% in FDR 4.Cash Credit (Trading Div) = 25% of book debts of trading division & advance payment made to GAIL 5 Term Loan 1& 2 Renewal = 25% of P & M 6. FDBP = Nil 7. Forward Contract Booking: = Nil 8 EPC =20% 9.T.L. III =25% of P&M and 40% on factory land and building Extent and Operation of the charge First Charge on Company's all moveable assets mentioned in the Original Hypothecation Deed/ schedule 1 of attached supplemental hypothecation deed stand extended from existing aggregate credit facilities of Rs. 89.231 Millions to revised aggregate credit facilities of Rs.150.181 Millions granted to the company, as mentioned in schedule II of attached supplemental deed of hypothecation. Others
Short particulars of the property charged	The whole of the movable properties of the borrower,viz R.M., SIP,F.G, Stock , Book debts, Receivable. Movebale Plant and Machineries etc both present and future lying or stored in or about all the- borrowers factories premises and godowns or wherever else the same may be held
Date of instrument modifying the charge	19/07/2008
Particulars of the present modification	Existing first charge by way of hypothecation on companies movable properties narrated in schedule I of attached supplemental deed of hypothecation stand increased from exciting aggregate credit facilities of Rs 89.231 Millions to revised aggregate credit facilities of Rs 150.181 Millions granted to the company

FIXED ASSETS:

• Land Free Hold
• Vehicles
• Furniture and Fittings
• Fax machine
• Plant and Machinery
• Factory Building
• Road site development
• Electrical Installation
• Tools and Equipment
• Computer
• Office Equipment

Trade Reference:

• Shree Cement Limited
• Hathi Cement
• Sanghi Cement

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.45.38
UK Pound	1	Rs.72.71
Euro	1	Rs.61.15

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--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		27

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.