MIRA INFORM REPORT

Report Date :

07.09.2011

IDENTIFICATION DETAILS

Name :	LINCON POLYMERS PRIVATE LIMITED
Registered Office :	308, Shanti Mall, Near Satadhar Cross Road, Ghatlodia, Ahmedabad – 380 061, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	04.03.1996
Com. Reg. No.:	04-028973
Capital Investment / Paid-up Capital :	Rs. 8.075 Millions
CIN No.: [Company Identification No.]	U17119GJ1996PTC028973
IEC No.:	0803008597
TAN No.: [Tax Deduction & Collection Account No.]	AHML00266A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Sells PP / HDPE Woven Sacks and Bags.
No. of Employees :	89 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (48)

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

Maximum Credit Limit :	USD 410000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments 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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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. Paresh B. Patel
Designation :	Director
Contact No.:	91-9825005913
Date :	27.08.2011

LOCATIONS

Registered Office :	308, Shanti Mall, Near Satadhar Cross Road, Ghatlodia, Ahmedabad – 380 061, Gujarat, India
Tel. No.:	91-79-27461493/27470603
Mobile No.:	91-9825005913 (Mr. Paresh B. Patel)
Fax No.:	91-79-27470812
E-Mail :	paresh@linconpolymers.com vksoni58@hotmail.com office@lincompolymers.com
Website :	http://www.linconpolymers.com
Location :	Owned
Factory :	Block No. 38, Khatraj, Ta- Kalol, District – Gandhinagar, Gujarat, India
Tel. No.:	91-2764-281274 / 281424
E-Mail :	deepak@linconpolymers.com
Location :	Owned
Branch Office :	701/6A, 7^th Floor, Krishna Green Land Park, Kasarvadavali Junction, Ghod Bunder Road, Opposite Parshwanath Engineering College, Thane (West), Mumbai-400604, Maharashtra, India
Tel. No.:	91-22-25970675
Fax No.:	91-22-25970579
E-Mail :	Mathews@linconpolymers.com

DIRECTORS

AS ON 29.09.2010

Name :	Mr. Babubhai Kachrabhai Patel
Designation :	Chairman
Address :	111, Vaibhav Bunglow, Near Sun-N-Step Club, Sola Road, Ghatlodia, Ahmedabad – 380 061, Gujarat, India
Date of Birth/Age :	10.03.1953
Qualification :	Graduate
Date of Appointment :	25.08.1999
DIN No :	00229793
Name :	Mr. Pareshbhai Babubhai Patel
Designation :	Director
Address :	111, Vaibhav Bunglow, Near Sun-N-Step Club, Sola Road, Ghatlodia, Ahmedabad – 380 061, Gujarat, India
Date of Birth/Age :	23.09.1976
Qualification :	Graduate
Date of Appointment :	25.08.1999
DIN No :	00229834
Name :	Mr. Hardikbhai Dilipbhai Patel
Designation :	Director
Address :	49, Krishna Society, Jail Road, Mehsana (N.G.)
Date of Birth/Age :	03.06.1976
Date of Appointment :	01.10.2004
DIN No :	00251825

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2010

Names of Shareholders	No. of Shares
Babubhai Kachrabhai Patel	232750
Pareshbhai Babubhai Patel	154150
Kamlaben Patel	50660
Nikita Patel	15950
Bhavesh Patel	15300
Ravi Industries Proprietor, Rameshbhai R Patel	20000
Vikaram M Shah	1500
Niravbhai P Brahmbhatt	1500
Laxmanbhai Patel	12000
Kashiram B Patel	100
Industrial Marketing (Proprietor Varshben Patel)	100
Divya Agarwal (HUF) and Anjua Agrawal	100

AS ON 29.09.2010

Category	Percentage
Bodies corporate	4.61
Directors or relatives of Directors	95.39
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Sells PP / HDPE Woven Sacks and Bags.

Products :

ITC CODE	PRODUCT
39232100	PP / HDPE Woven Sacks and Bags

Exports :

Products :

· PP / HDPE Woven Fabric and Sacks

Countries :

· Zambia

· UAE

· Oman

Imports :

Products :

· Granules

Countries :

· UAE

· Kuwait

· Qatar

Terms :

Selling :

L/C, Credit (100% advance)

Purchasing :

L/C, Credit

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
PP / HDPE Woven Fabric and Sacks Fabrics and Others	MT	--	4800	--
Woven Sacks	Pcs.	--	--	46379145
Fabrics	Mt	--	--	1322.108
Other Items	MT.	--	--	645.841

GENERAL INFORMATION

Customers :

· Wholesalers

· Retailers

· End Users

No. of Employees :

89 (Approximately)

Bankers :

· Punjab National Bank, Sola Road Branch, Ghatlodia, Ahmedabad – 380 061, Gujarat, India

· Axis Bank Limited

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
FROM PUNJAB NATIONAL BANK:
a) Working Capital Facilities
Cash Credit Facility	73.780	49.772
Buyers Credit Facility	32.633	0.000
b) Term Loan
Term Loan from PNB	50.352	11.998
Buyers Credit Facility from PNB	8.846	10.248
c) Vehicle Loan
From Punjab National Bank	1.002	1.330
From Axis Bank Limited	2.924	0.000
(Secured against hypothecation of respective vehicles)
Total	169.537	73.348
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
- From Directors	10.494	10.027
- From Inter Corporate Loan	17.495	12.419
- From Shareholders	12.417	14.168
Total	40.406	36.614

Banking Relations :	--
Auditors :
Name :	V K Soni and Company Chartered Accountant
Address :	501/B, Parshwa Tower, Near Pakvan-II, S G Road, Bodakdev, Ahmedabad-380054, Gujarat, India
Associates:	· Priyal Plast Private Limited · Malaya Plast Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs.10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
807,515	Equity Shares	Rs.10/- each	Rs. 8.075 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		8.075	6.510	6.510
2] Share Application Money		0.000	9.871	0.000
3] Reserves & Surplus		95.211	49.618	34.823
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		103.286	65.999	41.333
LOAN FUNDS
1] Secured Loans		169.537	73.348	67.412
2] Unsecured Loans		40.406	36.614	35.967
TOTAL BORROWING		209.943	109.962	103.379
DEFERRED TAX LIABILITIES		13.598	4.962	3.771
TOTAL		326.827	180.923	148.483
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		146.089	69.535	56.706
Capital work-in-progress		11.082	1.119	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	55.892	14.856	34.535
	Sundry Debtors	114.114	71.804	58.764
	Cash & Bank Balances	7.657	4.956	0.703
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	25.948	45.903	19.540
Total Current Assets		203.611	137.519	113.542
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	24.010	13.532	12.709
	Other Current Liabilities	5.005	7.0.98	5.285
	Provisions	4.940	6.629	3.790
Total Current Liabilities		33.955	27.259	21.784
Net Current Assets		169.656	110.260	91.758
MISCELLANEOUS EXPENSES		0.000	0.009	0.019
TOTAL		326.827	180.923	148.483

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	647.969	519.620	306.533
		Other Income	8.597	3.696	2.844
		TOTAL (A)	656.566	523.316	309.377
Less	EXPENSES
		Cost of Trading Sales	51.089	9.238
		Raw Material Consumed	489.604	391.473
		Manufacturing Expenses	45.006	46.630
		Office and Administrative Expenses	14.917	19.376
		Payment to Employees	8.778	4.527	276.530
		Preliminary Expenses W/Off	0.009	0.010
		Prior Period Expenditure	0.934	0.000
		Increase (Decrease) in Closing Stock of Finished Goods	(7.694)	11.401
		TOTAL (B)	602.643	482.655	276.530
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		53.923	40.661	32.847
Less	FINANCIAL EXPENSES (D)		15.710	10.671	10.318
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		38.213	29.990	22.529
Less/ Add	DEPRECIATION/ AMORTISATION (F)		13.553	7.323	6.094
	PROFIT BEFORE TAX (E-F) (G)		24.660	22.667	16.435
Less	TAX (I)		13.718	7.873	4.787
	PROFIT AFTER TAX (G-I) (J)		10.942	17.794	11.648
Add:	Mat Tax Credit Entitlement		4.915	0.000	0.000
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		40.578	25.784	14.136
	BALANCE CARRIED TO THE B/S		56.435	40.578	25.784
	EXPORT VALUE		21.508	27.812	44.454
	IMPORTS
		Raw Materials	47.523	54.349	13.565
		Capital Goods	1.641	11.866	1.479
	TOTAL IMPORTS		49.164	66.215	15.044
	Earnings Per Share (Rs.)		19.64	22.73	17.89

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.67	3.40	3.76
Net Profit Margin (PBT/Sales)	(%)	3.81	4.36	5.36
Return on Total Assets (PBT/Total Assets}	(%)	7.05	10.95	9.65
Return on Investment (ROI) (PBT/Networth)		0.24	0.34	0.40
Debt Equity Ratio (Total Liability/Networth)		2.49	2.15	3.12
Current Ratio (Current Asset/Current Liability)		6.00	5.04	5.21

LOCAL AGENCY FURTHER INFORMATION

Note : The Registered address of the company has been shifted from F-2, Aakansha Appartments, Near Sola Railway Crossing, Ghatlodia, Ahmedabad – 380 061, Gujarat, India to the present address with the effect form 29.01.2007.

FINANCIAL RESULTS

During the year, the company has achieved turnover and other income of Rs.647.969 millions as against turnover of Rs.519.620 millions achieved during the previous year 2009-10 registering growth of 24.70%. During the year, the company has achieved EBDITA of Rs.53.923 millions and cash profit of Rs.29.410 millions against EBDITA of Rs.40.662 millions and Cash profit of Rs.22.118 millions respectively achieved for the year 2009-10. The directors expect improvement in performance in current and coming years.

FORM 8

Corporate identity number of the company	U17119GJ1996PTC028973
Name of the company	LINCON POLYMERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	308, Shanti Mall, Near Satadhar Cross Road, Ghatlodia, Ahmedabad – 380 061, Gujarat, India
This form is for	Modification of charge
Type of charge	Immovable property
Particular of charge holder	Punjab National Bank Sola Road Branch, Ghatlodia, Ahmedabad – 380 061, Gujarat, India
Nature of instrument creating charge	Mortgage Deed [Without Possession] DTD. 31.08.2010
Date of instrument Creating the charge	31.08.2010
Amount secured by the charge	Rs. 265.100 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Extent and operation of the charge Exclusive first charge created in favour of Punjab National Bank, Sola Road Branch, Ahmedabad.
Short particulars of the property charged (Including location of the property)	Land bearing Block No.38/p, administration about 2500 sq. mtrs. with construction standing thereon situate, lying and being at Mouje (Sim) Khatrej, Taluka Kalol, Reg. District Gandhinagar and Sub-District Kalol; Land Block No.38/p, administration about 1-06-48 hec. area sq. mtrs. from same southern portion administration about 6813 sq. mtrs. and construction thereon administration about 334.44 sq. mtrs. situated in Mouje Khatrej, Taluka Kalol; Land situate being Vill. Khatrej, Talaluka Kalol, District Gandhinagar forming part of S.No.21/2 and B.No.39/p of Mouje Khatrej, Talaluka Kalol adm. 1983.90 sq. mtrs. there about together with buildings thereon and Bungalow No.12/A adm.plot area 429 sq.mts. with construction adm.620 sq. yards i.e.518.40 sq.mts. thereon, Malayvilla Bungalows, S.No.433 paiki hissa No.1+2+3,TP Sch.No.42 FP No.76 Mouje Sola, Talaluka Daskori
Whether any of the property or interest therein under reference is not registered in the name of the company.	Yes
If yes, in whose name it is registers	Property mentioned in Sr.No.15 (iii) is registered in the name of Malay Plast Private Limited and Property mentioned in Sr.No.15 (iv) is registered in the name of Mrs. Anita P. Patel and Mr. Paresh B. Patel.
Charge identification number of the charge to be modified	80016174
Date of instrument modifying the charge	23.08.2010
Particulars of the present modification	The present modification is made to further secure the charge of Rs. 265.100 millions by Mortgage (Without Possession) of immovable properties mentioned in Column No.15 above. Now at present the total charge is stands for aggregate maximum limits of Rs.265.100 millions. All other terms and conditions remain unchanged and continued.

FIXED ASSETS

- Building

- Plant and Machinery

- Electric Installation

- Furniture and Fixtures

- Office Equipments

- Bore / Tube well

- Motor Car

- Air Conditioner

- Computer

- Scooter

- Wind Mill

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.46.12
UK Pound	1	Rs.74.18
Euro	1	Rs.64.87

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--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		48

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.