MIRA INFORM REPORT

Report Date :

15.12.2012

IDENTIFICATION DETAILS

Name :	MUSCAT POLYMERS PRIVATE LIMITED
Registered Office :	212, Aditya Centre, 1^st Floor, Phulchhab Chowk, Rajkot – 360001, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	01.02.1994
Com. Reg. No.:	04-021183
Capital Investment / Paid-up Capital :	Rs. 43.328 millions
CIN No.: [Company Identification No.]	U17119GJ1994PTC021183
TAN No.: [Tax Deduction & Collection Account No.]	RKTM00062G
PAN No.: [Permanent Account No.]	AADFM3725D
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers of PP and HDPE Woven Sacks / Bags, used for Packaging, of Cement, Fertilizer, Salt, Minerals, Chemicals, etc
No. of Employees :	450 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

B (32)

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

Maximum Credit Limit :	USD 280000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. The reserves appear to be low. The company has recorded huge external borrowings which can be a threat to its liquidity. However, the operations of the company are carried out well. Trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings with some caution.

NOTES :

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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	BB (Suspended) [Long term fund based – Cash Credit]
Rating Explanation	Moderate risk of default
Date	10.01.2012

Rating Agency Name	ICRA
Rating	A4 (Suspended) [Short term limits]
Rating Explanation	Minimal degree of safety and very high credit risk.
Date	10.01.2012

Reason for Suspension: In absence of the requisite information from the company

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY

Name :	Mr. Jignesh Pandy
Designation :	Manager
Contact No.:	91-281-2448970
Date :	13.12.2012

LOCATIONS

Registered / Administrative Office :	212, Aditya Centre, 1st Floor, Phulchhab Chowk, Rajkot – 360001, Gujarat, India
Tel. No.:	91-281-2448970 / 2447642
Mobile No.:	91-9825218959 (Mr. Niraj Joshi)
Fax No.:	91-281-2476118
E-Mail :	jignesh_pandya@muscatpolymers.com ca@rkdoshi.com sales@muscatpolymers.com info@muscatpolymers.com
Website :	www.muscatpolymers.com www.muscat.tradeindia.com
Location :	Owned
Factory	Gundasari Road, Opposite Railway Crossing, Veraval (Shapar), Taluka: Kotda-Sangani, District Rajkot, Gujarat, India
Tele No.:	91-2827-253203/253204
Fax No.:	91-2827-253203
E-Mail :	niraj_doshi@muscatpolymers.com
Location :	Owned
Consignment Stockiest :	110, Aditya Centre, 1st Floor, Phulchhab Chowk, Rajkot – 360001, Gujarat, India
Tel. No.:	91-281-2450400
Fax No.:	91-281-2476118
E-Mail :	piyush_gajera@muscatpolymers.com

DIRECTORS

As on 29.09.2012

Name :	Mr. Rajivkumar Kishorechandra Doshi
Designation :	Director
Address :	Sonira, 1 – Tagore Nagar, Kalawad Road, Rajkot-360001, Gujarat, India
Date of Birth :	26.12.1956
Date of Appointment :	01.04.1998
Din No.:	00118736
Name :	Mr. Niraj Kishorebhai Doshi
Designation :	Director
Address :	75, Nautan Nagar, Kalawad Road, Rajkot-360001, Gujarat, India
Date of Birth :	29.12.1969
Date of Appointment :	01.04.1998
Din No.:	00118762
Name :	Mrs. Minaxi Madhookar Kothary
Designation :	Director
Address :	Muscat Villa, Mahadev Wadi, Gondal, Rajkot-360311, Gujarat, India
Date of Birth :	27.04.1950
Date of Appointment :	01.04.1998
Din No.:	01601433
Name :	Mr. Vishal Madhukarbhai Kothary
Designation :	Director
Address :	Muscat Villa, Mahadev Wadi, Gondal, Rajkot-360311, Gujarat, India
Date of Birth :	28.06.1973
Date of Appointment :	01.04.1994
Din No.:	01541706

KEY EXECUTIVES

Name :	Mr. Jignesh Pandy
Designation :	Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
Kothary Vishal	100
Kothary Minaxiben	216430
Bavabhai Gajera	10
Dilipbhai Khakhar	10
Jagdishbhai Khakhar	10
Kantilal Shah	10
Kishore P. Doshi	10
Prabhakar Khakhar	10
Kritika J. Khakhar	10
Sonalben Sheth	10
Sharadbhai Sheth	10
Nirajbhai Doshi	10
Piyushbhai Gajera	10
Virtual Concepts Private Limited	85000
Shiv Shyam Auto Leasing and Finance Private Limited	46640
Progro Management and Consultants Private Limited	56000
Nexus Monetzing Private Limited	29000
Total	433280

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2012

Category	Percentage
Bodies corporate	50.00
Directors or relatives of Directors	50.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturers of PP and HDPE Woven Sacks / Bags, used for Packaging, of Cement, Fertilizer, Salt, Minerals, Chemicals, etc
Exports :
Products :	PP Bags
Countries :	Spain German
Imports :
Products :	Raw Material
Countries :	Saudi Arabia
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Retailers and End Users

• Sanghi Cement
• Ambuja Cement
• Hathi Cement
• Shree Cement Limited

No. of Employees :

450 (Approximately)

Bankers :

v Development Credit Bank Limited

301, Trade Plaza, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India

v ICICI Bank Limited

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
From Development Credit Bank Limited (Secured by hypothecation of Plant and Machinery and mortgage of Factory Building)	15.000	143.916
From Development Credit Bank Limited (Secured by hypothecation of stock and book debts, Plant and Machinery and mortgage of Factory Building)	112.974
From ICICI Bank Limited	27.735
Total	155.709	143.916
Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
From Directors and Relative	10.974	70.265
From Shareholders	74.151
From Inter Corporates	0.000
Total	85.125	70.265

Banking Relations :	--
Auditors :
Name :	Pooja Rojasara and Company Chartered Accountants
Address :	"Bajarang", Street No. 3A,Gandhigham Society, Dr. Bhatt's Street, Raiya Road, Rajkot- 360007, Gujarat, India
PAN No.:	BGJPR2124Q
Associate :	Manibhadra Security

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.100/- each	Rs.50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
433280	Equity Shares	Rs.100/- each	Rs.43.328 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		43.328	43.328	43.328
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		27.268	17.148	12.011
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		70.596	60.476	55.339
LOAN FUNDS
1] Secured Loans		155.709	143.916	91.518
2] Unsecured Loans		85.124	70.264	50.604
TOTAL BORROWING		240.833	214.180	142.122
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		311.429	274.656	197.461
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		95.971	90.474	82.127
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	73.526	47.784	30.275
	Sundry Debtors	165.086	153.939	116.078
	Cash & Bank Balances	25.874	9.070	4.698
	Other Current Assets	10.995	0.000	0.000
	Loans & Advances	11.494	13.499	10.683
Total Current Assets		286.975	224.292	161.734
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	28.123	33.653	35.795
	Other Current Liabilities	37.312	0.000	0.000
	Provisions	6.082	6.457	10.605
Total Current Liabilities		71.517	40.110	46.400
Net Current Assets		215.458	184.182	115.334
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		311.429	274.656	197.461

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	614.993	503.139	457.752
		Other Income	26.282	23.343
		TOTAL (A)	641.275	526.482	457.752
Less	EXPENSES
		Cost of Material Consumed	236.341	167.102	435.975
		Purchases of Stock-in-trade	276.898	264.856
		Employee benefit Expense	35.818	24.709
		Other Expense	62.424	37.364
		Changes in Inventories of Finished Goods, work-in-progress and stock-in-trade	(0.911)	(1.192)
		TOTAL (B)	610.570	492.839	435.975
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		30.705	33.643	21.777
Less	FINANCIAL EXPENSES (D)		18.675	22.337	12.679
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		12.030	11.306	9.098
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.610	5.000	3.215
	PROFIT BEFORE TAX (E-F) (G)		6.420	6.306	5.883
Less	TAX (H)		(2.118)	1.169	1.247
	PROFIT AFTER TAX (G-H) (I)		8.538	5.137	4.636
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		17.148	12.011	12.427
Less	APPROPRIATIONS
		Proposed Dividend	2.166	0.000	4.333
		Tax on Dividend	0.351	0.000	0.719
	BALANCE CARRIED TO THE B/S		23.169	17.148	12.011
	EARNINGS IN FOREIGN CURRENCY		243.713	144.620	48.500
	IMPORTS		93.520	301.561	17.860
	Earnings Per Share (Rs.)		19.71	11.86	10.70

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.34	0.97	1.01
Net Profit Margin (PBT/Sales)	(%)	1.04	1.25	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.68	2.00	2.41
Return on Investment (ROI) (PBT/Networth)		0.10	0.10	0.11
Debt Equity Ratio (Total Liability/Networth)		4.42	4.20	3.41
Current Ratio (Current Asset/Current Liability)		4.01	5.59	3.49

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2012	31.03.2011	31.03.2010
	(Rs. In Millions)
For Goods, Jobwork and Expenses	28.123	33.653	35.795
For Capital Goods	--
Total	28.123	33.653	35.795

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

NOTE:

The registered office of the company has been shifted from Toral Complex, Opposite State Bank of Saurashtra B/S Shastrimandi, Rajkot, Gujarat, India to the present address w.e.f. 15.06.2006.

FINANCIAL RESULTS:

During the year Turnover and Other Income were Rs. 641.275 millions as against Rs. 526.567 millions in the previous year.

The profit before tax has also increased by 1.815 %. The Directors are hopeful of better performance in the coming years.

FIXED ASSETS:

• Land Free Hold
• Vehicles
• Furniture and Fittings
• Fax machine
• Plant and Machinery
• Factory Building
• Road site development
• Electrical Installation
• Tools and Equipment
• Computer
• Office Equipment

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 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.54.39
UK Pound	1	Rs.87.78
Euro	1	Rs.71.29

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		32

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.