MIRA INFORM REPORT

Report Date :

15.06.2011

IDENTIFICATION DETAILS

Name :	SANGIR PLASTICS PRIVATE LIMITED

Registered Office :	Sangir House, 366/2933, Motilal Nagar 2, Goregaon West, Mumbai-400062, Maharashtra

Country :	India

Financials (as on) :	31.03.2010

Date of Incorporation :	24.04.1982

Com. Reg. No.:	11-027000

Capital Investment / Paid-up Capital :	Rs.2.963 Millions

CIN No.: [Company Identification No.]	U25200MH1982PTC027000

TAN No.: [Tax Deduction & Collection Account No.]	MUMS36969C

PAN No.: [Permanent Account No.]	AABCS3737J

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturer of thermoplastics piping solutions.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (49)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 390000

Status :	Satisfactory

Payment Behaviour :	Regular

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 regular 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

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

LOCATIONS

Registered Office :	Sangir House, 366/2933, Motilal Nagar 2, Goregaon West, Mumbai-400062, Maharashtra, India
Tel. No.:	91-22-28724023/6120
Fax No.:	91-22-28741794
E-Mail :	sangir@vsnl.com anand@sangir.in

Factory 1 :	A1/2213 and 2213, III Phase, GIDC, Vapi - 396195, Gujarat, India
Tel. No.:	91-260-2430238/2420310
Fax No.:	91-260-2430238
E-Mail :	sangir@sancharnet.in

Factory 2 :	Survey 146, 147 and 148, Behind Raymond Limited, Udawada-Khadki Road, NH8, Western Express Highway, Taluka Pardi, Vapi-396185, Gujarat, India
E-Mail :	production2@sangir.in

DIRECTORS

As on 30.09.2010

Name :	Mr. Ramkumar Mohanlal Mandhana
Designation :	Director
Address :	B1 501, Jamunotri Sadan, Bangur Nagar, Goregaon West, Mumbai-400049, Maharashtra, India
Date of Birth/Age :	08.10.1946
Date of Appointment :	20.08.1996

Name :	Mr. Sushil Kumar Ramkunwar Mandhana
Designation :	Director
Address :	B1 502, Jamunotri Sadan, Bangur Nagar, Goregaon West, Mumbai-400049, Maharashtra, India
Date of Birth/Age :	10.02.1971
Date of Appointment :	20.08.1996

Name :	Mr. Anandkumar Ramkunwar Mandhana
Designation :	Director
Address :	B1 501, Jamunotri Sadan, Bangur Nagar, Goregaon West, Mumbai-400049, Maharashtra, India
Date of Birth/Age :	04.07.1977
Date of Appointment :	27.12.2003

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2010

Names of Shareholders		No. of Shares
Ramkunwar Mandhana		7900
Anandkumar Ramkunwar Mandhana		9742
Sumitradevi Mandhana		2740
Sushil Kumar Mandhana		5030
Sunita Sushil Mandhana		800
Kailashchand Bhandari		2000
Shivprasad Kabra		10
Smita Ajit Kamath		588
Sheetal Anand Mandhana		810
Nitin Jethaliya		10

Total		29630

As on 30.09.2010

Equity Share Breakup		Percentage of Holding
Category
Directors or relatives of directors		91.19
Other top fifty shareholders		8.81
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of thermoplastics piping solutions.

Products :

Product Description	Item Code
Tubes, Pipes and Fittings thereof made of Polymer of Ethylene and Polypropylene	3917,20, 21, 22 and 40

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
HDPE/PP Pipes, Fittings and Rods	M. Ton	6000.00	5500.00	3025.83

GENERAL INFORMATION

Bankers :

· Bharat Overseas Bank Limited, Bangur Nagar, Goregaon (West), Mumbai - 400090, Maharashtra, India

· Indian Overseas Bank, Goregaon Branch, Plot No.7, Bhanumati Premises CHS. Bangur Nagar, Goregaon (West) Branch, Mumbai – 400090, Maharashtra, India

· HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Cash Credit	14.655	0.000
Term Loan Item A) and B) against pledge of fixed deposits and book debts, hypothecation of stock, machinery, goods under L/C and equitable mortgage of lease hold land, factory building and personal guarantee of directors of the company.	23.009	3.661
Car Finance against hypothecation of car	1.225	0.000
Total	38.889	3.661

Unsecured Loan
From Directors	22.976	19.748
From Body Corporate	56.702	42.041
From Shareholders and Relatives	15.963	9.899
Total	95.641	71.688


Banking Relations :	--

Auditors :
Name :	S. S. Rathi and Company Chartered Accountants
Address :	401 Shreeshivdutta Apartment, Station Road, Goregaon (West), Mumbai - 400062, Maharashtra, India
Tel. No.:	91-22-23434382/28757415/28762159
Fax No.:	91-22-28757415/28762159
Email:	info@ssrca.com ssrathica@gmail.com

Associates/Subsidiaries :	TRF Plastochem Private Limited (U29212RJ1997PTC014132)

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
40000	Equity Shares	Rs.100/- each	Rs.4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
29630	Equity Shares	Rs.100/- each	Rs.2.963 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		2.963	1.481	1.481
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		96.386	69.697	48.960
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		99.349	71.178	50.441
LOAN FUNDS
1] Secured Loans		38.889	3.661	16.970
2] Unsecured Loans		95.641	71.688	46.024
TOTAL BORROWING		134.530	75.349	62.994
DEFERRED TAX LIABILITIES		3.914	2.103	0.849

TOTAL		237.793	148.630	114.284

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		95.870	31.141	30.215
Capital work-in-progress		1.713	18.220	12.768

INVESTMENT		1.300	1.300	1.300
DEFERREX TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	67.878	33.780	32.848
	Sundry Debtors	81.438	67.806	53.812
	Cash & Bank Balances	10.772	28.808	4.094
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	41.220	26.513	18.360
Total Current Assets		201.308	156.907	109.114
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	36.195	33.285
	Other Current Liabilities	14.371	14.733	31.470
	Provisions	11.832	10.920	7.643
Total Current Liabilities		62.398	58.938	39.113
Net Current Assets		138.910	97.969	70.001

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		237.793	148.630	114.284

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income		327.850	262.566
		Other Income		1.289	2.683
		TOTAL (A)	385.454	329.139	265.249

Less	EXPENSES
		Cost of Sales		241.187	201.519
		Personal Cost		9.120	6.864
		Manufacturing, Administration and Others Expenses	333.359	33.449	28.045
		Increase / Decrease in Inventory		0.039	(1.595)
		TOTAL (B)	333.359	283.795	234.833

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	45.344	30.416

Less	FINANCIAL EXPENSES (D)		NA	8.205	6.074

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		52.095	37.139	24.342

Less/ Add	DEPRECIATION/ AMORTISATION (F)		10.132	4.228	4.221

	PROFIT BEFORE TAX (E-F) (G)		41.963	32.911	20.121

Less	TAX (H)		13.618	12.175	7.106

	PROFIT AFTER TAX (G-H) (I)		28.345	20.736	13.015

Less	EARLIER YEARS EXCESS TAX PAID WRITTEN OFF		0.000	0.000	0.008

Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		61.238	40.502	27.495

Less	APPROPRIATIONS
		Interim Dividend	0.148	0.000	0.000
		Dividend Distribution Tax	0.025	0.000	0.000
		Fully Paid Bonus Shares	1.481	0.000	0.000
	BALANCE CARRIED TO THE B/S		87.929	61.238	40.502

	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	18.506	36.062	NA

	IMPORTS
		Raw Materials	145.650	80.090	NA
		Purchase for Trading	0.556	1.963	NA
	TOTAL IMPORTS		146.206	82.053	NA

	Earnings Per Share (Rs.)		956.63	1399.68	903.16

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	7.35	6.30	4.91

Net Profit Margin (PBT/Sales)	(%)	NA	10.04	7.66

Return on Total Assets (PBT/Total Assets}	(%)	14.12	17.50	14.44

Return on Investment (ROI) (PBT/Networth)		0.42	0.46	0.40

Debt Equity Ratio (Total Liability/Networth)		1.98	1.89	2.02

Current Ratio (Current Asset/Current Liability)		3.23	2.66	2.79

LOCAL AGENCY FURTHER INFORMATION

Bankers Charges Report as per Registry

This form is for	Modification of charge
Charge identification number of the modified	10158872
Corporate identity number of the company	U25200MH1982PTC027000
Name of the company	SANGIR PLASTICS PVT LTD
Address of the registered office or of the principal place of business in India of the company	Sangir House, 366/2933, Motilal Nagar 2, Goregaon West, Mumbai-400062, Maharashtra, India
Type of charge	Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India
Email	rbbform8@hdfcbank.com
Nature of description of the instrument creating or modifying the charge	Supplemental Letter of Hypothecation of Stocks and Book Debts.
Date of instrument Creating the charge	30.11.2010
Amount secured by the charge	Rs.173.800 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest at the rate as may be communicated by the Bank from time to time. Terms of Repayment Working Capital Facility shall be payable on demand Term Loan facility shall be repayable in suitable installments. Margin As may be stipulated by the Bank from time to time. Extent and Operation of the charge Hypothecation by way of First Charge on Company's Stocks and Book Debts to secure as a continuing security as mentioned in Column No.15 below for the repayment of Rs.173.800 Millions together with interest, costs, charges, expenses and other moneys due and payable by the Company to the Bank.
Short particulars of the property charged	Hypothecation first charge over the stocks and book debts of the company.
Particulars of the present modification	The charge shall now stand increased from Rs.113.800 Millions to Rs.173.800 Millions , (Comprising : LC of Rs.75.000 Millions , CC of Rs.45.000 Millions , Term Loan-I of Rs.3.800 Millions , Term Loan-II of Rs.50.000 Millions , Bank Guarantee of Rs. 10.000 Millions (sub limit)), against security of stocks and book debts of the company.

Fixed Assets:

Land
Building
Plant and machinery
Electric installations
Vehicles
Dies and Moulds
Furniture and fixture
Office Equipments
Factory Equipments
Motor car
Computers
Flat.

As per website details:

Profile:

Subject an ISO 9001:2000 and ISO 14001: 2004 Certified Company prides itself as a quality manufacturer of thermoplastics piping and sheet solutions. A broad array of products includes PP, PPH, Nucleated PP, HDPE, PVDF, PPGL, HIPS, PPFR and PB pipes and fittings and sprinkler irrigation systems. In India, the company competes with global leaders in the PP and PVDF markets and is known for having successfully executed turnkey jobs at the largest companies in the country.

The Company is spread over a total area of over 500000 sq feet, conveniently located in the industrial town of Vapi, Gujarat and Jaipur, Rajasthan in Western India. The company enjoys quick access to the Western Express Highway and is suitably within close reach of the Mumbai port. The company prides in the loyalty of approximately 80 talented employees, who move in tandem with the leadership of an experienced management team, well qualified in their functional fields. To achieve its quality benchmarks, the company sources its extrusion machinery only from the best suppliers in India and abroad, with technological superiority and in-house research teams.

Subject products are exported to over 10 different countries in 3 continents. Products are widely used in diverse applications handling a range of fluids and gases at temperature between - 40⁰C to 140⁰C.

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.44.77
UK Pound	1	Rs.73.45
Euro	1	Rs.64.55

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	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		49

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.

MIRA INFORM REPORT

67.878

81.438

10.772

0.000

41.220

201.308

36.195

14.371

11.832

62.398

138.910

7.35

NA

14.12

0.42

1.98

3.23

Unit