MIRA INFORM REPORT

Report Date :

28.07.2011

IDENTIFICATION DETAILS

Name :	SABIC INNOVATIVE PLASTICS (INDIA) PRIVATE LIMITED (w.e.f September 2007)
Formerly Known As :	ENDURING PLASTICS PRIVATE LIMITED
Registered Office :	Plastics Avenue, P O Jawahar Nagar, Vadodara – 391320, Gujarat
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	25.04.2007
Com. Reg. No.:	04 - 50658
Capital Investment / Paid-up Capital :	Rs.1086.225 Millions
CIN No.: [Company Identification No.]	U25202GJ2007PTC050658
TAN No.: [Tax Deduction & Collection Account No.]	BRDE00346D
PAN No.: [Permanent Account No.]	AABCE7565N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer, Trader and Exporter of Engineering Plastics
No. of Employees :	250 -Approximately

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 8790000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a part of SABIC group, worldwide. It is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct. 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 :	Mr. Manish Maheshwari
Designation :	Accounts Manager
Contact No.:	91-265-3068529

LOCATIONS

Registered Office/Factory :	Plastics Avenue, P O Jawahar Nagar, Vadodara – 391320, Gujarat, India
Tel. No.:	91-265-3068551/ 552/ 3068520
Fax No.:	91-265-2232144/ 2232144
E-Mail :	info@sabic-ip.com maheshsharma@sabic-ip.com
Website :	www.sabicinnovativeplastics.com
Area:	3500 sq. ft (Approximately)
Location :	Owned
Branch:	9^th Floor, Building -98, Cyber City DLF, Phase III, Gurgaon – 122002, Haryana, India Also Located at : v Gurgaon v Mumbai v Bangalore v Pune v Chennai

DIRECTORS

AS ON 29.09.2010

Name :	Mr. Venugopal K. Koka
Designation :	Whole Time Director
Address :	D-501 Adarsh Gardens, 8-Block Jayanagar, Bangalore – 560 082, Karnataka, India
Date of Birth/Age :	09.06.1956
Date of Appointment :	04.10.2007
Name :	Mr. Chetan Pravinchandra Soni
Designation :	Director
Address :	07-Subhash Nagar, Nrgirdhar Nagar, Shahi Baug, Ahmedabad – 380 004, Gujarat
Date of Birth/Age :	12.10.1973
Date of Appointment :	11.08.2008
Name :	Mr. Mahesh Kumar Sharma
Designation :	Director
Address :	C-103, Carlton Estate DLF, phase – V, Gurgaon – 122 002, Haryana
Date of Birth/Age :	29.04.1978
Date of Appointment :	11.08.2008
Name :	Mr. Surendra Umesh Kulkarni
Designation :	Director
Address :	E-301 – Mnatri Wood Lands, Areker Gate Bannerghatta Road, Bangalore – 560 076, Karnataka, India
Date of Birth/Age :	21.08.1948
Date of Appointment :	04.04.2008

KEY EXECUTIVES

Name :	Mr. Venkatesan P
Designation :	Secretary
Address :	1529-Maruti Vihar, Gurgaon – 122 002, Haryana
Date of Birth/Age :	21.05.1973
Date of Appointment :	12.05.2008
Date of Cessation:	21.01.2010
Name :	Mr. Amish Kumar Agarwal
Designation :	Vice President Commercial – SFS India
Date of Birth/Age :	43 Years
Date of Appointment :	03.08.2007
Qualification :	Diploma in Business Management
Name :	Mr. Prabir Kumar Das
Designation :	Commercial Leader – North
Date of Birth/Age :	46 Years
Date of Appointment :	03.08.2007
Qualification :	M. Tech (Plastics and Rubber Tech)
Name :	Mr. N K Ramaswamy
Designation :	Commercial Leader – West
Date of Birth/Age :	46 Years
Date of Appointment :	03.08.2007
Qualification :	B. Tech Polymer Science and Rubber
Name :	Mr. Ravinder Kumar Arora
Designation :	Polymer Leader
Date of Birth/Age :	46Years
Date of Appointment :	03.08.2007
Qualification :	Masters of Marketing Management
Name :	Mr. Manjaree Chowdhary
Designation :	Vice – President Legal Affairs
Date of Birth/Age :	43 Years
Date of Appointment :	03.08.2007
Qualification :	Masters of Law
Name :	Mr. Anurag Buch
Designation :	Product Market Leader
Date of Birth/Age :	48 Years
Date of Appointment :	03.08.2007
Qualification :	MBA (Marketing)
Name :	Venkatakrishnan Umamaheswaran
Designation :	Automotive Leader
Date of Birth/Age :	48 Years
Date of Appointment :	01.11.2007
Qualification :	BE (Mechanical)

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 29.09.2010)

Names of Shareholders	No. of Shares
Sabic Innovative Plastics Holding Singapore PTE Limited, Singapore	93479751
Sabic Innovative Plastics GP BV, Netherlands	15142794
Total	108622545

(AS ON 29.09.2010)

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer, Trader and Exporter of Engineering Plastics

Products :

Item Code No. (ITC Code)	39074000
Product Description	Polycarbonate Resins
Item Code No. (ITC Code)	39206190
Product Description	Polycarbonates Sheets and Films
Item Code No. (ITC Code)	39070000
Product Description	Polybutylene Terephthalate
Item Code No. (ITC Code)	39093010
Product Description	Polyphelene Oxide

Exports :

Products :

Engineering Plastics

Countries :

· Colombia

· Malaysia

· Australia

Imports :

Products :

Raw Material

Countries :

· Korea

· Europe

· China

· Australia

· USA

Terms :

Selling :

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

Purchasing :

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

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Advanced Engineering Plastics	M.T.	28010	14633
Polycarbonate Sheets	M.T.	3946	--

GENERAL INFORMATION

Customers :

· End Users

· OEM’s

No. of Employees :

250 -Approximately

Bankers :

· HDFC Bank, Delhi Branch, Bombay / Bangalore

· ABN Amro Bank, Delhi / Mumbai / Bangalore

Facilities :

Secured Loans :	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Vehicle Loan (secured by way of hypothecation of vehicles)	0.439	0.633
Finance lease obligation (secured vehicles and computers taken on lease)	2.795	5.370
Total	3.234	6.003
Unsecured Loans :	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
Short Term loans and advances from banks	0.000	85.276
Total	0.000	85.276

Banking Relations :	--
Auditors :
Name :	S.R. Batliboi and Company Chartered Accountant
Address :	Golf View Corpoarte Tower 5, Sector – 42, Sector Road, Gurgaon – 122 002, Haryana, India
Tel. No.:	91-124-4644000
Fax No.:	91-124-4644050
Holding Company :	· SABIC Innovative Plastics Holding Singapore Pte Limited, Singapore
Ultimate Holding Company:	· Saudi Basic Industries Corporation
Associates/Subsidiaries :	· SABIC Innovative Plastics Management (Shanghai) Company Limited · SABIC IP US LLC · IP LNP Malaysia Sdn. Bhd. · Saudi IP Malaysia Sdn. Bhd · SABIC IP Shanghai Company Limited · SABIC IP Japan LLC · SABIC IP (SEA) Pte Limited · SABIC IP Australia Pty limited · SABIC Pacific Pte Limited · SABIC Plastech Sunsheet Zhn · SABIC IP Korea Limited · SABIC IP China Company Limited · SABIC IP Hongkong Limited · SABIC Innovative Plastics BV · SABIC IP Singapore Pte Limited · SABIC IP South Americas · SABIC (Thailand) Company Limited · SABIC Innovative Plastics (SEA) Plastic elc · SABIC Research and Technology private Limited · SABIC Innovative Plastics (SEA) Pte Limited, Pacific HQ

CAPITAL STRUCTURE

AS ON 29.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
114900000	Equity Shares	Rs.10/- each	Rs.1149.000 Millions
100000	Preference Shares	Rs.10/- each	Rs.1.000 Millions
Total			Rs.1150.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
108622545	Equity Shares	Rs.10/- each	Rs.1086.225 Millions

NOTE

Of the above

(i) 93,479,751 Equity Shares of Rs.10 each are held by SABIC Innovative Plastics Holding Singapore Pte Limited, Singapore (the holding company)

(ii) 108,603,521 Equity Shares of Rs.10 each were allotted as fully paid for consideration other than cash pursuant to the scheme of arrangements and demerger dated 29.08.2007

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		1086.225	1086.225	1086.225
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1113.455	868.937	783.766
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2199.680	1955.162	1869.991
LOAN FUNDS
1] Secured Loans		3.234	6.003	2.380
2] Unsecured Loans		0.000	85.276	0.000
TOTAL BORROWING		3.234	91.279	2.380
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2202.914	2046.441	1872.371
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		524.057	457.263	422.885
Capital work-in-progress		8.687	27.732	54.307
Intangible Assets		0.000	54.880	71.886
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		44.807	20.557	12.326
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	799.560	1024.464	919.496
	Sundry Debtors	1405.201	1120.739	1062.493
	Cash & Bank Balances	294.121	49.912	132.185
	Other Current Assets	0.092	0.038	0.000
	Loans & Advances	149.282	96.115	141.409
Total Current Assets		2648.256	2291.268	2255.583
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	831.078	676.809	843.204
	Current Liabilities	66.094	68.658	60.425
	Provisions	125.721	59.792	40.987
Total Current Liabilities		1022.893	805.259	944.616
Net Current Assets		1625.363	1486.009	1310.967
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2202.914	2046.441	1872.371

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Sales	7035.300	6096.721	3599.923
		Other Income		33.671	22.835
		TOTAL (A)	7035.300	6130.392	3622.758
Less	EXPENSES
		Purchase of Traded Goods		3383.471	2489.679
		Raw material consumed (including packing materials)		1917.501	1015.800
		Personnel Expenses		201.955	109.969
		Operating and Other Expenses	6411.300	548.022	200.604
		Amortsiation of intangible assets		17.006	11.430
		Prior period items – Salaries, Wages and Bonus		5.259	0.000
		Increase/(Decrease) in Finished Goods		(165.192)	(473.715)
		TOTAL (B)	6411.300	5908.022	3353.767
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		624.000	222.370	268.991
Less	FINANCIAL EXPENSES (D)		0.900	14.404	9.446
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		623.100	207.966	259.545
Less/ Add	DEPRECIATION/ AMORTISATION (F)		94.000	69.804	42.186
	PROFIT BEFORE TAX (E-F) (G)		529.100	138.162	217.359
Less	TAX (H)		189.300	52.991	80.726
	PROFIT AFTER TAX (G-H) (I)		339.800	85.171	136.633
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	39.923	132.567	70.068
	IMPORTS
		Raw Materials	2038.166	1725.638	1073.090
		Capital Goods	27.064	34.877	50.814
	Earnings Per Share (Rs.)		3.13	0.78	1.90

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	4.82	1.39	3.77
Net Profit Margin (PBT/Sales)	(%)	7.52	2.27	6.04
Return on Total Assets (PBT/Total Assets}	(%)	16.67	5.04	8.12
Return on Investment (ROI) (PBT/Networth)		0.24	0.07	0.12
Debt Equity Ratio (Total Liability/Networth)		0.46	0.46	0.51
Current Ratio (Current Asset/Current Liability)		2.58	2.86	2.39

LOCAL AGENCY FURTHER INFORMATION

NOTE:

Registered office of the company has been shifted from Dharmsinh Park, NH No. 8, P. B. No. 3, Nadiad 387 002,

Gujarat, India to the present address w.e.f.30.08.2007

PERFORMANCE

The Company achieved a Net Turnover of Rs.7035.300 millions during the Financial Year under review up by 15.39% as against Rs. 6096.700 millions for the previous financial year. The growth in the turnover is reflective of the improved market response and conditions in the economy as a whole. The Profit before Interest, Depreciation and Taxes of the Company was Rs.624.000 millions as against Rs. 210.200 millions for the previous financial Year. Total Production for the financial year was 17,703 MT. There was an increase in the production capacity utilization, which-stood at 55.40% as against that of 52.24% in the previous financial year.

PLASTICS INDUSTRY:

The plastic industry in India has witnessed solid growth inspite of a global economic slowdown driven by strong domestic demand. Notable has been the growth in the Automotive segment which grew by about 17% during the financial year. The prices of products are highly influenced by the changes in price of Benzene and Crude Oil in addition to demand and supply factors and foreign exchange fluctuations.

I N HOUSE SHEET MANUFACTURING FACILITY:

During the year, the Company decided to move back the entire extruder plant that was leased to Jains Irrigation Systems Limited, Jalgaon, and start in-house sheet manufacturing at the existing Vadodara Plant. The Company has incurred a capital expenditure of Rs.70 millions and a revenue outlay of Rs.50 millions towards the same.

FIXED ASSETS

· Leasehold Land

· Buildings (including leasehold improvements)

· Plant and Machinery

· Furniture, Fixtures

· Office Equipment

· Computers

· Vehicles

· Software

· Non-compete fees

· Brand License

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.43.94
UK Pound	1	Rs.72.12
Euro	1	Rs.63.66

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
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	6
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.