MIRA INFORM REPORT

Report Date :

07.05.2011

IDENTIFICATION DETAILS

Name :	RESINS AND PLASTICS LIMITED
Registered Office :	Plot No. 8, Marol Industrial Estate of MIDC Cross Road, Andheri (East), Mumbai-400093, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	22.12.1961
Com. Reg. No.:	11-012223
Capital Investment / Paid-up Capital :	Rs. 35.723 millions
CIN No.: [Company Identification No.]	L25209MH1961PLC012223
TAN No.: [Tax Deduction & Collection Account No.]	MUMR14062G
PAN No.: [Permanent Account No.]	AAACRI888C
Legal Form :	A Public Limited Liability company. The company’s Share are Listed on the Stock Exchange.
Line of Business :	Manufacturer of various types of Synthetic Resins.
No. of Employees :	300 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 725700
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are fair. Financial position of the company appears to be sound. Payments are reported to be usually correct and as per commitments. The company can be considered good for business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INFORMATION PARTED BY

Name :	Mr. Shrikant Naik
Designation :	General Manager- Sales
Contact No.:	91-9820203603
Date :	06.05.2011

LOCATIONS

Registered Office :	Plot No. 8, Marol Industrial Estate of MIDC Cross Road, Andheri (East), Mumbai-400093, Maharashtra, India
Tel. No.:	91-22-28207897 / 28321671 / 28347897
Fax No.:	91-22-28217906 / 27412380
E-Mail :	resplast@bom7.vsnl.net.in info@resplast.com
Website :	http://www.resplast.com
Factory 1 :	Taloja Industrial Estate of M.I.D.C., Post Box No.6, Taloje A. V. 410208, District Raigad, India.
Tel. No.:	91-2646-223262 / 91-22-7412229, 7412380
Factory 2 :	Plot No. 3607, GIDC Industrial Estate, Ankleshwar, District Bharuch – 393 002, Gujarat
Tel. No.:	91-2646-223262

DIRECTORS

As on 22.07.2010

Name :	Mr. Ashwin Suryakant Dani
Designation :	Chairman
Address :	Home Villa, 48 Krishna Sanghi Path, Mumbai-400007, Maharashtra, India.
Date of Birth/Age :	24.10.1942
Date of Appointment :	13.01.1970
DIN No :	00009126
Name :	Mr. Mahendra Chimanlal Choksi
Designation :	Director
Address :	402 Shivtirth No. 2, Bhulabhai Desai Road, Mumbai-400026, Maharashtra, India.
Date of Birth/Age :	19.04.1941
Date of Appointment :	13.01.1970
Name :	Mr. Amar Arvind Vakil
Designation :	Director
Address :	Geetanjali, 9 N Gamadia Road, Mumbai-400026, Maharashtra, India.
Date of Birth/Age :	11.08.1952
Date of Appointment :	01.10.1996
DIN No :	00009252
Name :	Mr. Chatrabhuj Dwarkadas Kapadia
Designation :	Director
Address :	64, Walkeshwar Road, Sital Baug, Sital Sagar, Mumbai-400006, Maharashtra, India.
Date of Birth/Age :	14.07.1933
Date of Appointment :	15.03.1989
DIN No :	00022463
Name :	Mr. Sridhar S
Designation :	Director
Address :	103, Sewri-Wadala Estate, Mumbai-400031, Maharashtra, India.
Date of Birth/Age :	05.02.1951
Date of Appointment :	29.03.1989
Name :	Mr. Bharat Bhogilal Chovatia
Designation :	Director
Address :	10 Sanjog, 18 Pheroz Shah Street, Santacruz (West), Mumbai-400054, Maharashtra, India.
Date of Birth/Age :	13.09.1954
Date of Appointment :	28.08.2002
DIN No :	00271613
Name :	Mr. Parameswaran Ananthnarayanan
Designation :	Managing Director
Address :	603, Mululd Lakshmi Jyothi CHS Limited, V P Road, Mulund (West), Mumbai-400080, Maharashtra, India.
Date of Birth/Age :	29.03.1944
Date of Appointment :	05.07.2002
DIN No :	00022450
Name :	Mr. Rupen Ashwin Choksi
Designation :	Executive Director
Address :	11A, Jeevan Asha, 60A Peddar Road, Mumbai-400026, Maharashtra, India.
Date of Birth/Age :	02.08.1976
Date of Appointment :	21.06.2007
DIN No :	00059326
Name :	Mr. Vinod Chintamani Malshe
Designation :	Director
Address :	1, University Staff Quarters, UDCT Campus, Matunga, Mumbai-400019, Maharashtra, India
Date of Birth/Age :	28.02.1947
Date of Appointment :	27.01.2009
DIN No :	00642540
Name :	Mr. Dhiren Purshottam Mehta
Designation :	Director
Address :	804, Vastu Shilp, Behind Manish Park, R. J. Road, Pump House, Andheri (East), Mumbai-400093, Maharashtra, India
Date of Birth/Age :	31.08.1952
Date of Appointment :	08.12.2009
DIN No :	00001471

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 22.07.2010

Equity share breakup
Category	Percentage
Foreign holdings (Foreign institutional investor (s), Foreign companie (s) Foreign financial institution (s), Non-resident Indian (s) or Overseas corporate bodies or Others)	0.04
Bodies corporate	33.31
Directors or relatives of directors	38.85
Other top fifty (50) shareholders	7.70
Others	20.10
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Marketer of various types of Synthetic Resins.

Products :

Products Description	Item Code (ITC Code)
Alkyd Resins	39075000
Phenolic Resins	39094090
Polyamide Resins	39081090

• RPL Products
• PCL Products

Terms :

Selling :

Cash, Credit (30 days, 60 days, 90 days)

Purchasing :

Cash, Credit (30 days, 60 days, 90 days)

PRODUCTION STATUS As on 31.03.2010

Particulars	Unit	Installed Capacity	Actual Production
Synthetic Resin 100%	M.T.	5150	5619

Note: *As per certificate issued by the managing director on whom auditors have relied without verification.

GENERAL INFORMATION

Customers :

· END Users

· OEM’s

No. of Employees :

300 (Approximately)

Bankers :

State Bank of India, Backbay Reclamation Branch, Nariman Point, Mumbai

Facilities :

Unsecured Loan	As on 31.03.2010 (Rs. In Millions)	As on 31.03.2009 (Rs. In Millions)
Fixed Deposits [Amount repayable within one year Rs.0.910 Millions (P.Y.Rs.1.071 Millions)]	3.990	1.430
Trade Deposits	0.125	0.125
Total	4.115	1.555

Banking Relations :	--
Auditors :
Name :	Shah and Company Chartered Accountants
Address :	Maker Bhavan 2, Marine Lines, Mumbai-400020, Maharashtra, India.
Associates/Subsidiaries :	· Pragati Chemicals Limited · Asian Paints (India) Limited · Asian PPG Industries Limited · Ricinash Oil Mill Limited · Choksey Chemical Private Limited · Ayme Chemicals · Thirumali Chemicals Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital:

No. of Shares	Type	Value	Amount
5000000	Equity Share	Rs.10/- Each	Rs. 50.000 Millions

Issued Capital:

No. of Shares	Type	Value	Amount
3661100	Equity Share	Rs.10/- Each	Rs. 36.611 Millions.

Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
3572300	Equity Share	Rs.10/- Each	Rs. 35.723 Millions.

Note:

Of the above, 2375000 Equity Shares are allotted as Bonus Shares by capitalization of Reserves.

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		35.723	35.723	36.179
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		145.720	116.960	106.061
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		181.443	152.683	142.240
LOAN FUNDS
1] Secured Loans		0.000	0.000	22.316
2] Unsecured Loans		4.115	1.555	2.086
TOTAL BORROWING		4.115	1.555	24.402
DEFERRED TAX LIABILITIES		10.361	10.356	10.809
TOTAL		195.919	164.594	177.451
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		47.567	47.621	48.215
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.002	0.002	0.002
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	51.125	41.575	56.853
	Sundry Debtors	129.551	109.408	117.365
	Cash & Bank Balances	20.871	21.324	11.936
	Other Current Assets	0.453	0.231	0.249
	Loans & Advances	9.097	4.537	5.702
Total Current Assets		211.097	177.075	192.105
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	0.362	0.313	0.993
	Sundry Creditors	46.977	45.718	49.845
	Provisions	15.408	14.073	12.033
Total Current Liabilities		62.747	60.104	62.871
Net Current Assets		148.350	116.971	129.234
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		195.919	164.594	177.451

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	644.880	540.506	526.830
		Processing Charges	2.309	2.845	3.247
		Other Income	2.543	0.897	2.346
		TOTAL	649.732	544.248	532.423
Less	EXPENSES
		Material Consumed	500.255	432.263	414.078
		Employees Remuneration and Benefits	30.807	28.677	27.278
		Manufacturing, Administrative, selling and distribution Expenses	55.423	51.250	49.823
		TOTAL	586.485	512.190	491.179
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		63.247	32.058	41.244
Less/ Add	DEPRECIATION/ AMORTISATION		3.617	3.606	3.690
	PROFIT BEFORE TAX		59.630	28.452	37.554
Less	TAX		20.603	10.395	13.399
	PROFIT AFTER TAX		39.027	18.057	24.155
Add	Prior period items		0.147	0.745	0.018
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		67.685	59.242	45.928
Less	APPROPRIATIONS
		Transfer to General Reserve	4.000	2.000	2.500
		Proposed Dividend	8.931	7.145	7.145
		Tax on Dividend	1.483	1.214	1.214
	BALANCE CARRIED TO THE B/S		92.445	67.685	59.242
	EARNINGS IN FOREIGN CURRENCY		8.180	5.893	1.210
	IMPORTS
		Raw Materials	142.087	98.215	91.791
		R and D Material	0.000	0.000	0.290
	TOTAL IMPORTS		142.087	98.215	92.081
	Earnings Per Share (Rs.)		10.97	5.26	6.77

Particulars	31.03.2011
Sales Turnover (Approximately)	750.000

Expected Sales (2011-2012) : Rs.900.000 millions

The above information has been parted by Mr. Shrikant Naik.

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Sales Turnover	173.380	186.150	180.770
Total Expenditure	156.800	169.430	168.440
PBIDT (Excl OI)	16.580	16.720	12.330
Other Income	0.080	0.520	0.540
Operating Profit	16.660	17.240	12.870
Interest	0.090	0.110	0.100
Exceptional Items	0.000	0.000	0.000
PBDT	16.570	17.130	12.770
Depreciation	0.910	0.930	1.020
Profit Before Tax	15.660	16.200	11.750
Tax	5.080	4.780	3.760
Reported PAT	10.580	11.430	7.990
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	10.580	11.430	7.990

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.01	3.32	4.53
Net Profit Margin (PBT/Sales)	(%)	9.25	5.24	7.08
Return on Total Assets (PBT/Total Assets}	(%)	23.05	12.66	15.62
Return on Investment (ROI) (PBT/Networth)		0.33	0.19	0.26
Debt Equity Ratio (Total Liability/Networth)		0.37	0.40	0.61
Current Ratio (Current Asset/Current Liability)		3.36	2.95	3.05

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS

(Rs. in millions)

PARTICULARS	31.03.2010	31.03.2009	31.03.2008
Sundry Creditors – Others	44.882	42.754	47.485
Sundry Creditors - S S I	2.095	2.964	2.360
Total	46.977	45.718	49.845

OPERATIONS: 

The total income for the year has grown from Rs. 544.248 Millions in the previous year to Rs.649.733 Millions.

MANAGEMENT DISCUSSION AND ANALYSIS :

The Company manufactures Synthetic Resins, which mainly cater to industrial paint segment and also to printing inks. The growth of the company depends mostly on the growth of industrial paints segment.

The macro economic environment during the year 2009-10 was more conducive compared to that prevailing in 2008-09. Further, the steps taken by the Company on controlling the operating cost has helped in improving the margins notwithstanding this the Company is focused on improving margins of the existing products. The Board considers the performance of the Company as reasonable in the conditions prevailing during the year 2009-10.

The Company is focusing on cost reduction in the existing products and development of new products for improved margins and profit in the future.

The Company's Management is optimistic about the prospects in the coming years.

The Company has good internal control systems, the adequacy of which has been reported by the Auditors in their report. Industrial relations during the year were cordial. The number of employees stood at 102 as on 31st March, 2010.

Bankers Charges Report as per Registry

Name of the company

RESINS AND PLASTICS LIMITED

Presented By

State Bank of India, Churchgate Branch, Mumbai.

1) Date and description of instrument creating the change

1) Agreement of loan for overall limit facility 1

2) Agreement of hypothecation goods and assets facility 2

3) Letter regarding the grant of individual limit within the overall limit facility 5

All the above agreement are dated 05.12.1996 and executed for the creation of a single charge.

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 57.000 millions

	Rs. In Millions
DCC against hypothecation of stocks	20.000
DCC against hypothecation of book debts	25.000
Letter of Credit	10.000
Bank Guarantee	2.000
Total	57.000

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

A first charge by way of hypothecation of the borrower’s entire goods, movables and other assets present and future including documents of title to the goods and other assets such as book debts, outstanding moneys, receivables including receivables by way of cash assistance and /or cash incentive under the cash incentive scheme or any other scheme, claims, including claims by way of refund of customs/ excise duties under the bills, invoices, documents, contracts, insurance rights uncalled capital and all machinery present raw material (imported/indigenous)j, stocks in process, finished goods, any others (specify) letter of credit and bank guarantee, book debts/receivables.

4) Gist of the terms and conditions and extent and operation of the charge.

Rate of interest: DCC (Hypothecation of stocks): 17.75% (including interest tax letter of credit: commission) as per FEDI rule.

DCC hypothecation of book debts: 17.75% Including interest tax.

Bank Guarantee: as per bank’s st

Letter of credit and bank guarantee: 25%, book debts and receivables 30%

Margin: raw material imported/ indigenous goods: 33 1/3% , Stock in process 40%

5) Name and Address and description of the person entitled to the charge.

State Bank of India, Churchgate Branch, Mumbai – 400020, Maharashtra, India.

6) Date and brief description of instrument modifying the charge

No instrument but on 09.09.1997 an equitable mortgage by deposit of title deeds.

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The original charge was created on 05.12.1996 for Rs. 57.000 Millions. Now by the present dification dated 09.09.1997 the company’s mortgaged fixed at Rs. 57.000 millions on which the company of used an additional collateral security over the company’s immovable properties, i.e. all that piece and parcel of land known as plot no. 3A in the Taloja Industrial Area, within the village limits of padghe Taluka and registration sub district Panvel district and Regn. District Raigad, contained by admeasurements 18166 sq. mtrs. Or thereabove and bounded as follows that is to say: or toward the

North: By Road

South: By Plot No. 3

East: By Plot No. 5

West: MIDC land portion of plot No. 3

Together with all assets permanently fixed to the land and building and plant and machinery apperting fixed to the land and building and plant and machinery appertaining or affixed thereto.

Fixed Assets

• Leasehold Land
• Buildings
• Plant and Machinery
• Efflument Treatment Plant
• Electric and Pipe Fitting
• Other Equipment and Accessories
• Furniture and Office Equipments
• Vehicles
• Research and Dev Building
• Research and Dev Equipment
• Intangible Assets

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.44.78
UK Pound	1	Rs.73.46
Euro	1	Rs.65.27

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	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.