MIRA INFORM REPORT

Report Date :

16.11.2011

IDENTIFICATION DETAILS

Name :	MECHEMCO RESINS PRIVATE LIMITED
Registered Office :	27, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	05.07.1994
Com. Reg. No.:	11-079404
Capital Investment / Paid-up Capital :	Rs.8.542 Millions
CIN No.: [Company Identification No.]	U25209MH1994PTC079404
TAN No.: [Tax Deduction & Collection Account No.]	MUMM27872F
PAN No.: [Permanent Account No.]	AADCM8896L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Polymer Resins.
No. of Employees :	102 (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 150000
Status :	Satisfactory
Payment Behaviour :	Usually correct
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 usually 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

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

LOCATIONS

Registered Office :	27, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
Tel. No.:	91-22-24951799 / 24922039
Fax No.:	91-22-24945907
E-Mail :	mechemco@vsnl.com mechemcoresins@vsnl.com info@mechemco.com
Website :	www.mechemco.com
Area :	850 Sq Ft
Location :	Owned
Factory 1 :	D – 36/3, TTC Industrial Area, Turbe, Navi Mumbai, Maharashtra, India
Tel. No.:	91-22-27682720
Fax No.:	91-22-27682721
E-Mail :	5000 Sq. Meters
Location :	Owned
Factory 2 :	A – 34, MIDC, Phase – II, Domblivli (East), Thane– 421204, Maharashtra, India
Tel. No.:	91-251-2871356 / 2871998
Fax No.:	91-251-2871856

DIRECTORS

As on 30.09.2010

Name :

Dr. Pradeep Anant Joshi

Designation :

Director

Address :

2^nd Floor, 37, Datar Colony, V.S. Marg, Bhandup (East), Mumbai – 400092, Maharashtra, India

Date of Birth/Age :

10.08.1956

Qualification :

Polymer Technologist

Date of Appointment :

14.06.2004

PAN No. :

AAAPJ8420D

DIN No. :

01657394

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U74999MH1994PTC080394	Matrix Polymers Private Limited	Director	17/08/1994	17/08/1994	-	Active	YES
U26102MH1990PTC059007	Royal Thermoset Private Limited	Director	23/11/1994	23/11/1994	-	Active	YES
U65191MH2000GAT128702	Polyester Resin Manufactures Association	Director	13/09/2000	13/09/2000	-	Active	YES
U25209MH1994PTC079404	Mechemco Resins Private Limited	Director	14/06/2004	14/06/2004	-	Active	YES

Name :

Mr. Pradip Amaratlal Thakkar

Designation :

Director

Address :

170/6, Shiv Smruti, Sion West, Mumbai – 400022, Maharashtra, India

Date of Birth/Age :

21.12.1951

Qualification :

Chemical Engineer from IIT Kanpur

Date of Appointment :

05.07.1994

PAN No. :

AACPT2190C

DIN No. :

02610702

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U25209MH1994PTC079404	Mechemco Resins Private Limited	Director	5/07/1994	5/07/1994	-	Active	YES
U74999MH1994PTC080394	Matrix Polymers Private Limited	Director	17/08/1994	17/08/1994	-	Active	YES
U65191MH2000GAT128702	Polyester Resin Manufactures Association	Director	13/09/2000	13/09/2000	-	Active	YES

Name :

Mrs. Seema P. Thakkar

Designation :

Director

Address :

170/6, Shiv Smruti, Sion (West), Mumbai – 400022, Maharashtra, India

Date of Birth/Age :

08.04.1954

Qualification :

BA

Date of Appointment :

05.07.1994

PAN No. :

AAEPT2516L

DIN No. :

02610710

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U25209MH1994PTC079404	Mechemco Resins Private Limited	Director	5/07/1994	5/07/1994	-	Active	YES
U26102MH1990PTC059007	Royal Thermoset Private Limited	Director	5/07/1994	5/07/1994	-	Active	YES
U74999MH1994PTC080394	Matrix Polymers Private Limited	Director	17/08/1994	17/08/1994	-	Active	YES

Name :

Dr. Chaitanya Shantilal Shah

Designation :

Director

Address :

16, Prabhuprena, Vallabhbag Lane, Ghatkopar (East), Mumbai – 400077, Maharashtra, India

Date of Birth/Age :

28.08.1964

Qualification :

B. Tech

Date of Appointment :

14.06.2004

PAN No. :

AAEPS0332B

DIN No. :

02673090

Other Directorship :

CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
U24110MH1994PTC075872	Newage Corro Inhibitors Private Limited	Director	3/01/1994	3/01/1994	-	Active	YES
U25209MH1994PTC079404	Mechemco Resins Private Limited	Director	14/06/2004	14/06/2004	-	Active	NO

KEY EXECUTIVES

Name :	Madam Anandini Dewoolkar
Designation :	General Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on30.09.2010

Names of Shareholders	No. of Shares
Pradip Amaratlal Thakkar	355600
Seema P. Thakkar	150100
Prakash Amratlal Thakkar	34000
Rekha P Thakakr	1500
Vishal Prakash Thakkar	1500
Pradeep Anant Joshi	136000
Chaitanya Shantilal Shah	16500
Piya Pradip Thakkar	35000
Sharad Nyalchand Shah	37000
Bharati Sharad Shah	5000
Hardik Shahrad Shah	17000
Bela Shahrad Shah	5000
Anandini V Dewoolkar	25000
Ketan Sanghvi	5000
Aditya Pradip Thakkar	30000
Total	854200

Equity Share Break up (Percentage of Total Equity)

As on 30.09.2010

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Polymer Resins.

GENERAL INFORMATION

Suppliers :

As on 31.03.2009

· Ace Chemicals

· Aryavart Chemicals

· Adan L Enterprises Limited

· Adhishank Chemicals Private Limited

· Alpha Chemie

· Ankush Enterprise

· Bmg Chemicals Private Limited

· Bright Industries

· Crescent Chemicals

· C.J. Shah and Company

· Centrum Mettalics Private Limited

· Crescent Chemsol Private Limited

· Crest Chemicals

· Changzhou Yabang Chemical Company

· Classic Solvents Private Limited

· Eastern Industrial Syndicate

· FRP Institute

· Gem Corporation

Customers :

As on 31.03.2009

• Aaskhay Enterprises
• Add Marketing
• Advance FRP
• Almor Fiber Glass Limited
• Amalgamated Ind Composite
• Arihant Industrial Corp. Limited
• Alchem Polymers
• Askib Engineers P. Limited
• Balaji Composites Limited
• Balaji Industries
• Bhavi Plast Private Limited
• Construction Composite
• Doorman Industries
• Epp Composites Private Limited
• Excel Fibrotech Private Limited
• Excel Glazing Systems Private Limited
• Jyoti Plastic Works Private Limited

No. of Employees :

102 (Approximately)

Bankers :

· Bank of Maharashtra, Ready Money Terrace, Ground Floor, Dr Annie Besant Road, Worli Naka, Mumbai – 400018, Maharashtra, India

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Bank of Maharashtra C C A/C	25.111	20.617
Bank of Maharashtra Term Loan	4.064	12.608
Bank of Maharashtra Packing Credit A/c	18.756	14.973
Car Loan HOM (The Term Loan, Cash Credit Facilities and Packing Credit Facilities are secured against equitable mortgage of land and Building and Hypothecation of stocks and Book debts, Plant and Machinery, Car – as applicable)	0.577	0.000
Total	48.508	48.198
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)	As on 31.03.2009 (Rs. in Millions)
Pradip Thakkar	4.654	4.697
Seema Thakkar	0.893	1.318
Pradeep Joshi	0.639	0.848
Anandini Dewoolkar	1.019	1.019
Sharad Shah	1.680	1.994
Hardik Shah	0.080	0.222
Bela Shah	0.200	0.221
BhartiBen Shah	0.200	0.222
Prakash Thakkar	1.675	2.121
Piya Thakkar	0.832	0.941
Aditya Thakkar	0.792	0.941
Chaitanya Shah	0.000	0.056
Total	12.664	14.599

Banking Relations :	--
Auditors :
Name :	Karia and Shah Company Chartered Accountants
Address :	Off. 390, 3^rd Floor, Rajgir Sadan, Opposite Sion Railway Station, Laxmi Baug, Sion (West), Mumbai – 400022, Maharashtra, India
Tel. No.:	91-22-24244829/ 24072650
Fax No.:	91-22-24044828
E-Mail :	kariashah@yahoo.com
PAN.:	AGPPK5635C

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
854200	Equity Shares	Rs.10/- each	Rs.8.542 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		8.542	7.502	7.502
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		29.493	15.041	5.567
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		38.035	22.543	13.069
LOAN FUNDS
1] Secured Loans		48.508	48.198	59.201
2] Unsecured Loans		12.664	14.599	11.291
TOTAL BORROWING		61.172	62.797	70.492
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		99.207	85.340	83.561
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		35.186	28.737	29.210
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	38.572	25.066	36.110
	Sundry Debtors	136.324	92.710	63.358
	Cash & Bank Balances	3.162	3.322	0.573
	Other Current Assets	0.000	0.000	0.000
	Loans, Advances and Deposits	37.171	29.681	26.790
Total Current Assets		215.229	150.779	126.831
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	142.874	85.530	70.204
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	8.865	9.236	2.932
Total Current Liabilities		151.739	94.766	73.136
Net Current Assets		63.490	56.013	53.695
MISCELLANEOUS EXPENSES		0.531	0.590	0.656
TOTAL		99.207	85.340	83.561

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2010
	SALES
		Income		590.865
		Other Income		5.302
		TOTAL (A)		596.167
Less	EXPENSES
		Office Expenses		569.522
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)		569.522
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			26.645
Less/ Add	DEPRECIATION/ AMORTISATION (D)			4.693
	PROFIT BEFORE TAX (C-D) (E)			21.952
Less	TAX (F)			7.500
	PROFIT AFTER TAX (E-F) (G)			14.452
	Earnings Per Share (Rs.)			16.00

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	2.42	NA	NA
Net Profit Margin (PBT/Sales)	(%)	3.71	NA	NA
Return on Total Assets (PBT/Total Assets}	(%)	8.77	NA	NA
Return on Investment (ROI) (PBT/Networth)		0.577	NA	NA
Debt Equity Ratio (Total Liability/Networth)		5.59	6.98	10.98
Current Ratio (Current Asset/Current Liability)		1.42	1.59	1.73

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL RESULTS :

During the year the total sales achieved at RS. 590.865, the Profit for the year (before tax) at Rs.21.952 Millions.

FORM 8

Corporate identity number of the company	U25209MH1994PTC079404
Name of the company	MECHEMCO RESINS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	27, Kewal Industrial Estate, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India
This form is for	Modification of charge
Charge identification number of the modified	90354015
Type of charge	Book debts Movable property (not being pledge) Goodwill Patent, license under a patent Trademark Copyright or license under a copyright Rights titles interests therein
Particular of charge holder	Bank of Maharashtra, Ready Money Terrace, Ground Floor, Dr. Annie Besant Road, Worli Naka, Mumbai – 400018, Maharashtra, India
Nature of instrument creating charge	Composit Deed of Hypothecation for all facilities
Date of instrument Creating the charge	31.01.2011
Amount secured by the charge	Rs.168.500 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest CC : BR+3% i.e. 12.50% p.a. and Term Loan (New0 : BR+3% i.e. 12.5% p.a. with a monthly rests. Interest and Commission on P.C, Bill Discounting, FOBN/FOBPD and L/C Facility as per C.O. Guidelines Terms of Repayment Cash Credit on Demand. PC/ FOBN/ BP/ BD etc. on realization of export bills and Term Loan repayable in 60 monthly installment of Rs.0.683 Million p.m. plus interest (including during moratorium) to be paid as and when applied, starting from 30^th July, 2011 till the 30^th June 2016 Margin Cash Credit 25%, Packing Credit 10%, New Term Loan 25.45%, and Letter of Credit 10% in FDR Extent and Operation of the charge Charge of Hypothecation of movables, book debts etc. and IPRs as described in column no. 15 and covers along with principal sum of Rs.168.500 Millions, interest, additional interest, costs, charges, expenses etc. as per details of enhancement of charge i.e. FUND BASES – Cash Credit Rs.0.375 Million and Packing Credit, FOBN/ FOBP Rs.20.000 Millions each, and Term Loan of Rs.41.000 Millions NON FUND BASED – Letter of Credit Rs.50.000 Millions Others Nil
Short particulars of the property charged	(i) First and Exclusive Charge and Security by way of Hypothecation of present and future movable plants, machineries, as per Schedule IV of hypothecation deed viz., Plant Styrene Tank, Blenders, Motors, gear (ii) box, Reactor with condenser, Diesel Tank, M.S. Injection Tanks, Pipelines, Ejection Systems, Valves, Cooling Towers, oil pumps, and goods, stock of raw material, items, inventories, stock in process (iii) semi finished goods and finished goods, stores and spares, stock in trade, goods in process, movables in transit or laying or situate at any place at any time and present and future tangible (iv) and intangible assets, vehicle, goodwill, other IPRs and all rights, title, interest and benefit of borrower in or over all contracts, agreements and amounts and rights vis a vis thereto (v) receivables, book debts due or to become due to the borrower at any time or from time or from time to time from any person and borrowers rights, titles, or interest therein
Date of instrument modifying the charge	23.09.2009
Particulars of the present modification	Hypothecation charge extended to Rs.157.500 Millions on 23.09.2009 now further enhanced as per First Schedule First of Hypothecation Deed to Rs.168.500 Millions to secure increase in Cash Credit and L/C Facilities and grant of a New Term Loan, thus in Rs. : 1) Cash Credit Rs.37.500 Millions (increased from Rs.30.000 Millions) 2) Packing Credit Rs.20.000 Millions + 3) FOBN/ FOBP Rs.20.000 Millions 4) LC Rs.50.000 Millions (increased from Rs.37.500 Millions)+ 5) New Term Loan Rs.41.000 Millions = Rs.168.500 Millions

Fixed Assets:

• Land (MIDC)
• Factory Building
• Electrical Installation
• Plant and Machinery
• Piping
• Storage Tank
• Generator
• Instrumentation
• Xerox Machine
• Fire Fighting Equipments
• EPBX System
• Air Conditioner
• Computer
• Motor Car

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.50.56
UK Pound	1	Rs.80.30
Euro	1	Rs.68.79

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	YES
--AFFILIATION	YES/NO	NO
--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.