MIRA INFORM REPORT

Report Date :

17.10.2011

IDENTIFICATION DETAILS

Name :	SUDHAKAR POLYMERS LIMITED
Registered Office :	Balaram Thanda, Near Industrial Estate, Suryapet-508214, Nalgonda, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	29.05.1995
Com. Reg. No.:	01-020498
Capital Investment / Paid-up Capital :	Rs.45.000 Millions
CIN No.: [Company Identification No.]	U25203AP1995PLC020498
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Pipe Fittings Flanges, Plastic, PVC PU Products, etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

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

Maximum Credit Limit :	USD 270000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Financial position of the company is improving. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small to mediocre 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 :	Balaram Thanda, Near Industrial Estate, Suryapet-508214, Nalgonda, Andhra Pradesh, India
Tel. No.:	91-8684-220814
Fax No.:	91-8684-253034
E-Mail :	rajnishpopat@gmail.com mahadevm@yahoo.com
Branch Office:	45 to 49, R.R. Towers, Chirag Ali Lane, Abids, Hyderabad-500001, Andhra Pradesh, India
Tel. No.:	91-40-23201191/23201572/27537312/27534968
Fax No.:	91-40-23204289

DIRECTORS

As on 28.07.2010

Name :

Mr. Jaydev Meela

Designation :

Director

Address :

H No. 3-5-202, Tilak Nagar, Suryapet-508312, Nalgonda, Andhra Pradesh, India

Date of Birth/Age :

28.11.1959

Date of Appointment :

11.06.2001

Din No.:

01662991

Other Directorship:

S. No.	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
1	U25209AP1992PTC014067	SUDHAKAR PLASTIC PRIVATE LIMITED	Director	03-04-92	03-04-92	02-11-09	Active	NO
2	L25209AP1989PLC009860	RATHI PIPES AND PROFILES LIMITED	Director	18-09-94	18-09-94	-	Dormant	NO
3	U74999AP1984PTC005125	RAATHI PIPES AND PROFILES PRIVATE LIMITED	Director	18-09-94	18-09-94	-	Active	NO
4	U25203AP1995PLC020498	SUDHAKAR POLYMERS LIMITED	Managing director	02-11-09	01-06-01	-	Active	NO
5	U01401AP1997PTC028394	SUDHAKAR IRRIGATION SYSTEMS PRIVATE LIMITED	Managing director	01-06-01	01-06-01	-	Active	NO
6	U51103AP2004PTC044854	SANJAY DHRUV TRADERS PRIVATE LIMITED	Director	13-12-04	13-12-04	13-12-10	Dormant	NO
7	U25119AP2010PTC066625	SUDHAKAR PVC PRODUCTS PRIVATE LIMITED	Whole-time director	11-02-10	09-01-10	-	Active	NO
8	U25206AP2001PTC037762	SADGURU POLYMERS PRIVATE LIMITED	Director	08-05-10	08-05-10	-	Active	NO

Name :

Mr. Prabhakar Ananthula

Designation :

Director

Address :

H. No. 1-1-189, Opposite Government Junior College, Suryapet-508213, Nalgonda, Andhra Pradesh, India

Date of Birth/Age :

04.09.1958

Date of Appointment :

01.04.1998

Din No.:

01683970

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74999AP1984PTC005125	RAATHI PIPES AND PROFILES PRIVATE LIMITED	Director	18-09-94	18-09-94	Active	NO
2	L25209AP1989PLC009860	RATHI PIPES AND PROFILES LIMITED	Director	18-09-94	18-09-94	Dormant	NO
3	U25203AP1995PLC020498	SUDHAKAR POLYMERS LIMITED	Director	01-04-98	01-04-98	Active	NO
4	U01401AP1997PTC028394	SUDHAKAR IRRIGATION SYSTEMS PRIVATE LIMITED	Director	01-06-01	01-06-01	Active	NO
5	U45200AP2006PTC048724	SUDHAKAR INFRASTRUCTURE PRIVATE LIMITED	Director	09-01-06	09-01-06	Active	NO
6	U25119AP2010PTC066625	SUDHAKAR PVC PRODUCTS PRIVATE LIMITED	Managing director	11-02-10	09-01-10	Active	NO

Name :

Mr. Krupakar Ananthula

Designation :

Director

Address :

H. No. 1-1-189, Opposite Government Junior College, Suryapet-508213, Nalgonda, Andhra Pradesh, India

Date of Birth/Age :

24.04.1971

Date of Appointment :

31.12.2004

Din No.:

01683956

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U74999AP1984PTC005125	RAATHI PIPES AND PROFILES PRIVATE LIMITED	Director	31-03-04	31-03-04	Active	NO
2	L25209AP1989PLC009860	RATHI PIPES AND PROFILES LIMITED	Director	31-03-04	31-03-04	Dormant	NO
3	U25203AP1995PLC020498	SUDHAKAR POLYMERS LIMITED	Director	31-12-04	31-12-04	Active	NO
4	U01401AP1997PTC028394	SUDHAKAR IRRIGATION SYSTEMS PRIVATE LIMITED	Director	31-12-04	31-12-04	Active	NO
5	U25119AP2010PTC066625	SUDHAKAR PVC PRODUCTS PRIVATE LIMITED	Whole-time director	11-02-10	09-01-10	Active	NO

Name :

Mr. Vasudev Meela

Designation :

Director

Address :

H No. 3-5-202, Tilak Nagar, Suryapet-508312, Nalgonda, Andhra Pradesh, India

Date of Birth/Age :

02.06.1958

Date of Appointment :

01.04.2008

Din No.:

02198711

Other Directorship:

S. No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L25209AP1989PLC009860	RATHI PIPES AND PROFILES LIMITED	Whole-time director	01-04-98	01-04-98	Dormant	NO
2	U74999AP1984PTC005125	RAATHI PIPES AND PROFILES PRIVATE LIMITED	Whole-time director	01-04-98	01-04-98	Active	NO
3	U25203AP1995PLC020498	SUDHAKAR POLYMERS LIMITED	Additional director	01-04-08	01-04-08	Active	NO

Name :

Mr. Sudhakar Ananthula

Designation :

Director

Address :

H. No. 1-1-189, Opposite Government Junior College, Suryapet-508213, Nalgonda, Andhra Pradesh, India

Date of Birth/Age :

12.09.1966

Date of Appointment :

01.04.2008

Din No.:

02218960

Other Directorship:

S. No.	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
1	U25209AP1992PTC014067	SUDHAKAR PLASTIC PRIVATE LIMITED	Director	03-04-92	03-04-92	02-11-09	Active	NO
2	L25209AP1989PLC009860	RATHI PIPES AND PROFILES LIMITED	Managing director	01-04-98	01-04-98	-	Dormant	NO
3	U74999AP1984PTC005125	RAATHI PIPES AND PROFILES PRIVATE LIMITED	Managing director	01-04-98	01-04-98	-	Active	NO
4	U45200AP2006PTC048724	SUDHAKAR INFRASTRUCTURE PRIVATE LIMITED	Director	09-01-06	09-01-06	-	Active	NO
5	U25203AP1995PLC020498	SUDHAKAR POLYMERS LIMITED	Additional director	01-04-08	01-04-08	-	Active	NO
6	U25119AP2010PTC066625	SUDHAKAR PVC PRODUCTS PRIVATE LIMITED	Whole-time director	11-02-10	09-01-10	-	Active	NO

Name :

Ms. Vijaya Kumari Meela

Designation :

Director

Address :

H No. 3-5-202, Tilak Nagar, Suryapet-508312, Nalgonda, Andhra Pradesh, India

Date of Birth/Age :

12.05.1960

Date of Appointment :

15.10.2009

Din No.:

02815498

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.07.2010

Names of Shareholders	No. of Shares
Mahadev Meela	470548
Vasudev Meela	385413
Jaydev Meela	498965
Prabhakar Ananthula	280880
Dayakar Ananthula	510500
Sudhakar Ananthula	530500
Krupakar Ananthula	393500
Ravi Shankar	119400
Vijaya Kumar Meela	112000
Parvathi Meela	48053
Mani Veera Meela	364587
Nirmala Meela	251034
Indira Ananthula	281620
Padma Ananthula	52000
Mani Ananthula	32000
Sharada Ananthula	169000
Total	4500000

As on 28.07.2010

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

BUSINESS DETAILS

Line of Business :

Manufacturer of Pipe Fittings Flanges, Plastic, PVC PU Products, etc.

PRODUCTION STATUS (AS ON 31.03.2010)

Particulars	31.03.2010
Installed Capacity	16700 Tons / Annum
Actual Production [Being a technical matter, not verified by auditors]	11365 Tons / Annum

GENERAL INFORMATION

Bankers :

Andhra Bank, Suryapet Branch, Nalgonda District, Suryapet-508213, Andhra Pradesh, India

Facilities :

Secured Loan	As on 31.03.2010 [Rs. in Millions]	As on 31.03.2009 [Rs. in Millions]
Term Loan From:
Andhra Bank (Bellary)	0.254	8.254
Andhra Bank (Suryapet)	26.840	34.581
Citi Corporate Finance	0.000	0.536
HDFC Car Loan	0.379	0.595
Working Capital Loan From:
Andhra Bank OCC Surapet	32.178	21.858
Andhra Bank OCC Hyderabad	12.879	9.448
Andhra Bank OCC Bellary	4.418	4.323
Total	76.948	79.595
Unsecured Loan
Sales Tax Deferment	95.293	95.293
From Directors	22.938	14.242
From Share Holders	12.795	7.599
From Others	0.271	0.480
Total	131.297	117.614

NOTE: Loans from Andhra Bank is secured by hypothecation of all present and future goods, book debtors and other movable assets of the company and also mortgage by deposit of title deeds of all the immovable properties of the company situated at Balram Thanda, Suryapet.

Banking Relations :	--
Auditors :
Name :	M. Anandam and Company Chartered Accountants
Address :	7A, Surya Towers, S.P. Road, Secunderabad, Hyderabad-500003, Andhra Pradesh, India
Tel. No.:	91-40-27812377/27812034
Fax No.:	91-40-27812091
Website :	www.anandam.in
Pan No.:	AACFM8791J

CAPITAL STRUCTURE

As on 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
4500000	Equity Shares	Rs.10/- each	Rs.45.000 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		45.000	45.000	45.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		23.105	12.991	14.441
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		68.105	57.991	59.441
LOAN FUNDS
1] Secured Loans		76.948	79.595	80.799
2] Unsecured Loans		131.297	117.614	123.403
TOTAL BORROWING		208.245	197.209	204.202
DEFERRED TAX LIABILITIES		12.519	11.158	10.638
TOTAL		288.869	266.358	284.281
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		153.461	138.615	130.216
Capital work-in-progress		21.622	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	91.271	61.967	83.865
	Sundry Debtors	64.363	67.093	61.059
	Cash & Bank Balances	9.104	3.691	2.567
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	29.136	31.729	33.150
Total Current Assets		193.874	164.480	180.641
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	35.163	30.119	31.808
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	44.925	6.618	4.768
Total Current Liabilities		80.088	36.737	36.576
Net Current Assets		113.786	127.743	144.065
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		288.869	266.358	274.281

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	647.854	576.359	510.238
		Other Income	3.637	0.807	3.268
		TOTAL (A)	651.491	577.166	513.506
Less	EXPENSES
		Raw Material Consumed	466.786	445.422	377.880
		Fitting Purchase	6.997	6.319	5.956
		Manufacturing Expenses	52.742	45.864	36.158
		Personnel Cost	15.738	10.680	8.092
		Administration, Selling and Other Expenses	28.523	23.298	37.892
		Prior Period Adjustments	0.000	0.000	(0.091)
		Increase / Decrease in Stocks	(7.808)	6.414	(0.178)
		TOTAL (B)	562.978	537.997	465.709
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		88.513	39.169	47.797
Less	FINANCIAL EXPENSES (D)		11.159	14.266	11.268
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		77.354	24.903	36.529
Less/ Add	DEPRECIATION/ AMORTISATION (F)		20.953	19.160	15.727
	PROFIT BEFORE TAX (E-F) (G)		56.401	5.743	20.802
Less	TAX (H)		20.050	1.929	6.759
	PROFIT AFTER TAX (G-H) (I)		36.351	3.814	14.043
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7.363	9.414	(4.626)
Less	APPROPRIATIONS
		Transfer to General Reserve	4.000	0.600	0.000
		Dividend	22.500	4.500	0.000
		Tax on Dividend	3.737	0.765	0.000
	BALANCE CARRIED TO THE B/S		13.477	7.363	9.417
	IMPORTS
		Raw Materials	67.066	34.118	17.049
	Earnings Per Share (Rs.)		8.08	0.85	3.12

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.57	0.66	2.73
Net Profit Margin (PBT/Sales)	(%)	8.70	1.00	4.07
Return on Total Assets (PBT/Total Assets}	(%)	16.23	1.89	6.69
Return on Investment (ROI) (PBT/Networth)		0.83	0.10	0.35
Debt Equity Ratio (Total Liability/Networth)		4.23	4.03	4.05
Current Ratio (Current Asset/Current Liability)		2.42	4.48	4.94

LOCAL AGENCY FURTHER INFORMATION

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	90117829
Corporate identity number of the company	U25203AP1995PLC020498
Name of the company	SUDHAKAR POLYMERS LIMITED
Address of the registered office or of the principal place of business in India of the company	Balaram Thanda, Near Industrial Estate, Suryapet-508214, Nalgonda, Andhra Pradesh, India
Type of charge	Book Debts Immovable Property Floating Charge
Particular of charge holder	Andhra Bank, Suryapet Branch, Nalgonda District, Suryapet-508213, Andhra Pradesh, India
Email	bmwg1518@andhrabank.co.in
Nature of description of the instrument creating or modifying the charge	Board Resolution Extension of security to Sudhakar PVC Products Private Limited Certificate of registration of Mortgage
Date of instrument Creating the charge	29.01.2011
Amount secured by the charge	Rs.238.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest OCC - Base rate 8.25% + Spread 4.25% = 12.50% p.a. TL - Base rate 8.25% + Spread 4.25% +TP 0.25% = 12.75% p.a. Terms of Repayment As per the Composite agreement dated 13.09.2010 Margin OCC: Inventory - 25% Receivables - 30% DUBD: 10% FLC: Cash margin - 10% BG: Cash margin - 10% TL: 25% on Plant and machinery 40% on civil structures Extent and Operation of the charge As per the agreement dated 13.09.2010
Short particulars of the property charged	Extension of EM of land and buildings of the factory and Hypothecation of machinery (Suryapet unit and Bellary units) Total factory land admeasuring 20812 sq yrds and bulding thereon S. No 75, 76, 77 at Suryapet. Plot no 193,194,195,196 situated at Mundargi 3rd stage, Industrial area within village limits of Mundargi, Bellary Taluka, Karnataka state and building thereon
Particulars of the present modification	The Existing limits of Sudhakar Polymers Limited is Rs 238.000 millions which remain unchanged on this modification. This is modified as under: Extension of mortgage on property of Sudhakar polymers ltd to Sudhakar PVC products Private Limited to the extent of Rs 199.000 millions.

FIXED ASSETS:

· Land

· Factory Building

· Plant and Machinery

· Heavy Vehicles

· Furniture and Fixtures

· Vehicles Light

· Office Equipments

· Computer

· Moulds

· Software

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.49.07
UK Pound	1	Rs.77.42
Euro	1	Rs.67.72

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	4
--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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

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.