MIRA INFORM REPORT

Report Date :

09.09.2011

IDENTIFICATION DETAILS

Name :	MONARCH SELF ADHESIVE TAPES AND FOAMS (INDIA) PRIVATE LIMITED
Formerly Known As :	MONARCH SELF ADHESIVE TAPES (INDIA) PRIVATE LIMITED
Registered Office :	No.302, V. P. Road, Jalahalli, Bangalore – 560013, Karnataka
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	02.12.1993
Com. Reg. No.:	08-14990
Capital Investment / Paid-up Capital :	Rs.20.000 Millions
CIN No.: [Company Identification No.]	U26102KA1993PTC014990
TAN No.: [Tax Deduction & Collection Account No.]	BLRM01564D
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufactures and Supplies a range of Self-Adhesive Tapes in Rolls and Sheets.
No. of Employees :	102 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (33)

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

Maximum Credit Limit :	USD 160000
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small mediocre business dealings at usual trade terms an d 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	A1	A1

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

LOCATIONS

Registered/ Marketing Office :	No.302, V. P. Road, Jalahalli, Bangalore – 560013, Karnataka, India
Tel. No.:	91-80-28389412/ 13/ 28380292/ 1196/ 1368
Fax No.:	91-80-28381060
E-Mail :	accounts@monarchtapes.com sales@monarchtapes.com monarchworks@vsnl.net monarch@blr.vsnl.net.in monarchworks@monarchtapes.com
Website :	http://www.monarchtapes.com
Factory I :	Main Plant No. 302, V. P. Road, Jalahalli, Bangalore – 560013, Karnataka, India
Tel. No.:	91-80-28381196/28380292
E-Mail :	monarchworks@vsnl.net
Factory II :	Polyurethane Foam Manufacturing Plant, Polyethylene Cross Link Foam Manufacturing Plant and Stores Sy. No. 12/1B, Laxmipura Road, Abbigere Village, Bangalore – 560090, Karnataka, India
Tel. No.:	91-80 – 23253748
E-Mail :	stores@monarchtapes.com
Branch Office :	Located at: · Mumbai · Delhi · Pune · Chennai · Hyderabad

DIRECTORS

(AS ON 30.09.2010)

Name :	Mr. Prabhakara Narsingsa Matrani
Designation :	Managing Director
Address :	No.13, 1st Floor, 16th Cross, 8th Main, Bandappa Garden, Muthyalanagar, Bangalore – 560054, Karnataka, India
Date of Birth/Age :	01.01.1934
Date of Appointment :	02.12.1993
Name :	Mrs. Padma Hanumappa
Designation :	Director
Address :	No. 1, Chamundeswri Layout, Doddabommasanda, Bangalore – 560097, Karnataka, India
Date of Birth/Age :	01.04.1959
Date of Appointment :	02.12.1993
Name :	Mr. Suresh Reddy
Designation :	Director
Address :	No 911, B1, 1st Main Road, Bahubalinagar, Bangalore – 560013, Karnataka, India
Date of Birth/Age :	05.10.1959
Date of Appointment :	03.12.2004
Name :	Mr. Rohit Metrani
Designation :	Director
Address :	2555, 21st Main, 28th Cross, Banashankari, 2nd Stage, Bangalore – 560013, Karnataka, India
Date of Birth/Age :	26.12.1968
Date of Appointment :	26.12.2006

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 30.09.2010)

Names of Shareholders	No. of Shares
Prabhakara Narsingsa Matrani	145994
Padma Hanumappa	25000
Kishore Wadhwani	1
Sheena R	1
Prakash Moolchand	1
Vijay Kumar Shreechand	1
Bhana R Kalro	1
Veena S. Baglani	1
Narendra Lalwani	5000
Chandraprakash Lalwani	5000
Suresh Reddy	12000
Sudhakar Kaup	7000
Total	200000

(AS ON 19.03.2011)

Names of Shareholders	No. of Shares
Prabhakara Narsingsa Matrani	3000
Rohit Metrani	10000
Padma Hanumappa	3000
Suresh Reddy	3000
Sudhakar Kapu	3000
Total	22000

(AS ON 30.09.2010)

Category	Percentage
Bodies corporate	5.00
Directors or relatives of directors	95.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufactures and Supplies a range of Self-Adhesive Tapes in Rolls and Sheets.

Products :

Products Description	Item Code No.
Manufacturers of Self Adhesive Tapes and Foams	3919

GENERAL INFORMATION

No. of Employees :

102 (Approximately)

Bankers :

· ING Vysya Bank Limited

Chamber of Commerce Building, Kempegowda Road, Bangalore – 560009, Karnataka, India

Facilities :

Secured Loans	31.03.2010 (Rs. In millions)	31.03.2009 (Rs. In millions)
Loans and Advance from Bank
Cash Credit Account	48.887	55.880
(secured against First charge on stock of Raw Materials, WIP, finished Goods, Book Debts and Plant an d Machinery of the Company)
Other Loans and Advance (Secured by Hypothecation of Rottary cutting machine and Personal Guarantee of all Directors)	0.842	--
Total	49.729	55.880
Unsecured Loans	31.03.2010 (Rs. In millions)	31.03.2009 (Rs. In millions)
From Banks	2.100	0.497
From Others	11.144	0.000
Total	13.244	0.497

Banking Relations :	--
Financial Institution :	· Cholamandalam Investment and Finance Company Limited Dare House, No. 2 N S C Bose Road, Parrys, Chennai – 600001, Tamilnadu, India
Auditors :
Name :	Mohan and Sridhar Chartered Accountant
Address :	# 27, Sri Bilaya, II Floor, 10^th Cross, Margosda Road, Malleswaram, Bangalore – 560003, Karnataka, India

CAPITAL STRUCTURE

(AS ON 27.09.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Share	Rs.100/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2220000	Equity Share	Rs.100/- each	Rs.22.200 Millions

(AS ON 31.03.2010)

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Share	Rs.100/- each	Rs.20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200000	Equity Share	Rs.100/- each	Rs.20.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	301.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		20.000	15.000	10.731
2] Share Application Money		0.000	1.066	4.000
3] Reserves & Surplus		18.939	14.230	9.949
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		38.939	30.296	24.680
LOAN FUNDS
1] Secured Loans		49.729	55.880	54.425
2] Unsecured Loans		13.244	0.497	1.895
TOTAL BORROWING		62.973	56.377	56.320
DEFERRED TAX LIABILITIES		1.976	2.160	2.785
TOTAL		103.888	88.833	83.785
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		28.248	27.629	24.902
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	38.852	39.983	32.853
	Sundry Debtors	60.919	47.722	47.105
	Cash & Bank Balances	3.658	0.966	0.269
	Other Current Assets	0.016	0.000	0.000
	Loans & Advances	24.458	19.908	19.881
Total Current Assets		127.903	108.579	100.108
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	32.393	27.225	19.247
	Other Current Liabilities	10.738	13.146	15.012
	Provisions	9.132	7.004	6.966
Total Current Liabilities		52.263	47.375	41.225
Net Current Assets		75.640	61.204	58.883
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		103.888	88.833	83.785

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	301.03.2009	31.03.2008
	SALES
		Income	217.911	182.758	208.948
		Other Income	2.486	5.850	7.719
		TOTAL	220.397	188.608	216.667
Less	EXPENSES
		TOTAL	210.251	179.596	208.712
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		10.146	9.012	7.955
Less/ Add	DEPRECIATION/ AMORTISATION		3.206	2.797	2.728
	PROFIT BEFORE TAX		6.940	6.215	5.227
Less	TAX		2.231	1.934	2.643
	PROFIT AFTER TAX		4.709	4.281	2.584
	Earnings Per Share (Rs.)		28.29	39.96	35.73

KEY RATIOS

PARTICULARS		31.03.2010	301.03.2009	31.03.2008
PAT / Total Income	(%)	2.14	2.27	1.19
Net Profit Margin (PBT/Sales)	(%)	3.18	3.40	2.50
Return on Total Assets (PBT/Total Assets}	(%)	4.44	4.56	4.18
Return on Investment (ROI) (PBT/Networth)		0.18	0.21	0.21
Debt Equity Ratio (Total Liability/Networth)		2.96	3.42	3.95
Current Ratio (Current Asset/Current Liability)		2.45	2.29	2.43

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered Office of the company has been shifted from #16, 1^st Floor, SNS Chambers, 239, Sankey Road, Sadashivnagar, Bangalore – 560080, Karnataka, India , to the present address w.e.f. 17.04.2006.

COMPANY BUSINESS PERFORMANCE

The company has achieved gross turnover of Rs.240.314 Million for the year 2010 as against Rs.205.774 Million for the year 2009 which shows an increase in sales by 19.32%.

The sales during the year in automotive sector is 55.55% and D. G. Set enclosure sector is 30.64% which is likely to witness further increase in terms of sales value during the current financial year.

The company has earned a net profit of Rs.4.709 Millions (2.16%) as against Rs.4.281 Millions (2.34%) during the year 2008-09. This is achieved by setting up of full-fledged manufacturing unit at Pune and conversion unit at Chennai and Delhi with improvised process.

In the would of changing technology, they have been continuously improving products technology and operation process.

They have set up an industrial unit with 45,000 sq. fts. On leasehold land in abbigere (Bangalore) for manufacturing polyurethane. Polyethylene Crosslink and PVC/ NBR foam under One Roof.

BUSINESS DESCRIPTION

Founded in 1978, Subject is one of the providers of foam-based products in India. The company manufactures and supplies a range of self-adhesive tapes in rolls and sheets. It also stocks and sells polyethylene and polyurethane foam products. The company additionally offers a variety of tapes for wrapping underground pipes in petrol refineries. It provides specialised foam tapes for sealing gaps in doors and windows. In addition, the company offers numerous special purpose tapes for use in office machines, telecommunications equipment, control panels, refrigerators and air conditioners.

FORM 8:

Corporate identity number of the company	U26102KA1993PTC014990
Name of the company	MONARCH SELF ADHESIVE TAPES AND FOAMS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.302, V P Road, Jalahalli, Bangalore – 560013, Karnataka, India accounts@monarchtapes.com
This form is for	Creation of charge
Type of charge	Movable property (not being pledge)
Particular of charge holder	Cholamandalam Investment and Finance Company Limited Dare House, No. 2 N S C Bose Road, Parrys, Chennai – 600001, Tamilnadu, India secretarial-roc@chola.murugappa.com
Nature of instrument creating charge	Vehicle Loan agreement dt.29.7.2010
Date of instrument Creating the charge	29.7.2010
Amount secured by the charge	Rs.0.744 Million
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interests: Flat rate of interest at 6.91% it will remain fixed during the term of Loan facility. Terms of Repayment: Term of Repayment principal and interest to be made with in 35 months form the borrowing date. Margin: 10% Extent and Operation of the charge: First and exclusive charge on the security and the charge will operate as a continuing security till the repayment of loan / dues under the loan agreement.
Particulars of the property charged	First and exclusive charge on the vehicle - Eicher 10.95

FIXED ASSETS

· Plant and Machinery

· Electrical Installation

· Furniture and Fixture

· Motor Vehicles

· Tools and Dies

· Office Equipments

· Bicycle

· Computers

· D G Set

· Motor Car

· Fax Machine

· Building

· Air Conditioner

WEBSITE DETAILS:

PROFILE:

Subject was established in the year 1978. The founder of this unit is one of the pioneers in self adhesive tapes and was associated earlier with multinational company, J&J in Q.A and R&D.

He has to his credit of introducing many new tapes for the first time in India. He is the first to introduce PVC Insulation Tapes confirming to defence specifications, polyethylene  self adhesive tapes for pipe wrapping of underground pipes in petrol refinery and Cloth gummed tape for packaging before BOPP Tape came into Indian Market.

Over the years, we have progressed from a small unit to a full fledge wide range tapes manufacturing with R & D Facilities catering to Industries in vertually all sectors and segments.

The key to this remarkable growth has been the company's commitment to development of new products, quality and service.

This commitment has seen us to achieve the leadership  by manufacturing for the first time and leader in India for different polymers foam base self adhesive products along with other range of self adhesive tapes, and in view of vision of tomorrow, they have their plant of manufacturing polyurethane foam. They have setup the same to manufacture polyurethane foam for the needs as well as for other clients.

Release Paper or film is the backbone of self adhesive Industry. They have commenced the Manufacturing.

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.46.18
UK Pound	1	Rs.73.65
Euro	1	Rs.64.95

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	4
--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		33

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.