MIRA INFORM REPORT

Report Date :

20.02.2012

IDENTIFICATION DETAILS

Name :	ESSEN POLYMERS PRIVATE LIMITED
Registered Office :	Plot No.11, Survey No. 209, Industrial Area, Village Veraval, Taluka Kotdasangani, Rajkot-360024, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	29.12.1988
Com. Reg. No.:	04-011700
Capital Investment / Paid-up Capital :	Rs. 5.850 Millions
CIN No.: [Company Identification No.]	U17119GJ1988PTC011700
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacturer of Plastic Packaging Materials.
No. of Employees :	45 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 95000
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.

INFORMATION PARTED BY

Name :	Mr. Paresh
Designation :	Commercial Manager
Contact No.:	91-9825074474
Date :	17.02.2012

LOCATIONS

Registered Office / Factory:	Plot No.11, Survey No. 209, Industrial Area, Village Veraval, Taluka Kotdasangani, Rajkot-360024, Gujarat, India
Tel. No.:	91-2827-252018 / 252019 / 252010 / 252658
Fax No.:	91-2827-252610
E-Mail :	essen@essenpol.com mnmanvarca@rediffmail.com
Website :	http://www.essenpoly.com
Area :	2000 sq. ft.
Location :	Owned
Works :	Veraval (Shapar), Rajkot, Plot No. 5, Survey no. 209, Industrial Area, Vill : Veraval (Shapar), Taluka : Kotdasangani, District: Rajkot, Gujarat, India

DIRECTORS

AS ON 25.07.2011

Name :	Mr. Girish Chunilal Pandya
Designation :	Managing Director
Address :	“Gayatri Krupa” Parnakuti Society, Rajkot-360005, Gujarat, India
Date of Birth/Age :	01.07.1964
Qualification :	B. Com
Date of Appointment :	01.11.1988
DIN No.:	00029624

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	U17119GJ1988PTC011700	ESSEN POLYMERS PRIVATE LIMITED	Managing director	01-08-09	29-12-88	-	Active	NO
2	U24224GJ2002PTC041119	ESSEN SPECIALITY FILMS PRIVATE LIMITED	Director	14-08-02	14-08-02	31-03-09	Active	NO
3	U25200GJ1996PTC029111	KANKAI PAACKAGING PRIVATE LIMITED	Director	01-03-07	01-03-07	05-02-11	Active	NO

Name :	Mr. Chunilal Labhshankar Pandya
Designation :	Director
Address :	“Gayatri Krupa” Parnakuti Society, Rajkot-360005, Gujarat, India
Date of Birth/Age :	08.06.1935
Qualification :	H.Sc
Date of Appointment :	01.11.1988
DIN No.:	00029735
Name :	Mr. Jawahar Chunilal Pandya
Designation :	Director
Address :	Shree Gayatri Krupa, 4, Parna Kuti Society, Nana Mava Main Road, Rajkot-360005, Gujarat, India
Date of Birth/Age :	07.05.1961
Qualification :	B. com
Date of Appointment :	01.11.1988
DIN No.:	00029544

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	U17119GJ1988PTC011700	ESSEN POLYMERS PRIVATE LIMITED	Director	29-12-88	29-12-88	-	Active	NO
2	U25209GJ1994PLC022139	ESSEN MULTIPACK LIMITED	Managing director	01-04-10	27-05-94	-	Active	NO
3	U25200GJ1996PTC029111	KANKAI PAACKAGING PRIVATE LIMITED	Director	01-11-00	01-11-00	05-02-11	Active	NO
4	U24224GJ2002PTC041119	ESSEN SPECIALITY FILMS PRIVATE LIMITED	Director	14-08-02	14-08-02	31-03-09	Active	NO

Name :	Mr. Vishal Jawahar Pandya
Designation :	Director
Address :	“Gayatri Krupa” 4, Parnakuti Society, Rajkot-360005, Gujarat, India
Date of Birth/Age :	07.06.1986
Date of Appointment :	01.04.2009
DIN No.:	02454844

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	U25209GJ1994PLC022139	ESSEN MULTIPACK LIMITED	Whole-time director	01-04-10	02-09-08	Active	NO
2	U17119GJ1988PTC011700	ESSEN POLYMERS PRIVATE LIMITED	Director	01-04-09	01-04-09	Active	NO

KEY EXECUTIVES

Name :	Mr. Paresh
Designation :	Commercial Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 25.07.2011

Names of Shareholders	No. of Shares
Chunilal L. Pandya	3510
Ranjanben C Pandya	3510
Jawahar Pandya	4300
Harshidaben Pandya	5550
J C Pandya – HUF	3310
Vishal Pandya	4000
Girish Pandya	7550
Gitaben Girish Pandya	5300
G. C. Pandya – HUF	4310
A. C. Pandya – HUF	4900
Atul Pandya	7720
Meeta Pandya	4540
Total	58500

AS ON 25.07.2011

Equity Shares Break Up	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Plastic Packaging Materials.
Exports :
Countries :	Middle East Countries
Imports :
Products :	Raw Material
Countries :	Qatar
Terms :
Selling :	L/C, Cash, Credit
Purchasing :	L/C, Cash, Credit

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Plastic Film and Bags	M.T. / Kgs.	3000	1571422.90
Master Batch	M.T. / Kgs.	180	184950.00
Waste	Kgs.	--	50416.20

Note :

1. Actual production does not include the production of Job-work.

2. The figure of production of Master Batch and Waste is inclusive of Captive Consumption.

GENERAL INFORMATION

Suppliers :

Qatar Petro Chemical Company

Customers :

Wholesalers and Retailers

· Rathna Packaging India Private Limited

No. of Employees :

45 (Approximately)

Bankers :

• Axis Bank Limited, Titan Near K. K. V. Circle, Kalawad Road, Rajkot-360005, Gujarat, India
• Punjab National Bank, Jubilee Branchm Jawahar Road, Rajkot-360002, Gujarat, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
Working capital
Axis Bank Limited (Secured against hypothecation of goods and Book Debts and second charge over fixed assets)	4.182	8.940
Vehicle Loan
ICICI bank	0.000	0.000
Axis Bank Limited (Secured against Hypothecation of car)	1.452	0.483
Total	5.634	9.423
Unsecured Loan	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Directors, Shareholders and Relatives	15.549	8.693
Total	15.549	8.693

Banking Relations :	--
Auditors :
Name :	M. N. Manvar and Company Chartered Accountant
Address :	504, Star Plaza, Phulchhab Chowk, Rajkot-360001, Gujarat, India
Tel. No.:	91-2827-6627070 / 2455750
Pan No.:	ABSPM6534E
Sister Concern :	Esser Multipack Limited

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
80000	Equity Shares	Rs.100/- each	Rs. 8.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
58500	Equity Shares	Rs.100/- each	Rs. 5.850 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		5.850	5.850	5.850
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		18.145	15.467	8.870
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		23.995	21.317	14.720
LOAN FUNDS
1] Secured Loans		5.634	9.423	7.102
2] Unsecured Loans		15.549	8.693	1.507
TOTAL BORROWING		21.183	18.116	8.609
DEFERRED TAX LIABILITIES		2.947	2.872	2.001
TOTAL		48.125	42.305	25.330
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		27.713	21.102	11.953
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.450	0.450	0.450
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.594	15.368	10.070
	Sundry Debtors	19.659	9.364	15.975
	Cash & Bank Balances	0.035	0.015	0.068
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	5.249	6.943	3.077
Total Current Assets		40.537	31.690	29.190
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.737	2.317	5.835
	Other Current Liabilities	1.418	0.470	0.234
	Provisions	6.420	8.150	10.194
Total Current Liabilities		20.575	10.937	16.263
Net Current Assets		19.962	20.753	12.927
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		48.125	42.305	25.330

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	161.959	142.190	127.717
		Job Work Income	1.735	0.632	0.000
		Other Income	0.032	1.137	(1.448)
		TOTAL (A)	163.726	143.959	126.269
Less	EXPENSES
		Raw Material Consumed	127.570	111.138	101.188
		Manufacturing, Selling and Administrative Expenses	20.280	16.262	13.593
		Loss on Sale of Vehicles	0.298	0.000	0.000
		Increase / (Decrease) in Finished Goods	0.880	(1.879)	0.710
		TOTAL (B)	149.028	125.521	115.491
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		14.698	18.438	10.778
Less	FINANCIAL EXPENSES (D)		3.205	1.099	1.024
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		11.493	17.339	9.754
Less/ Add	DEPRECIATION/ AMORTISATION (F)		2.503	2.209	1.376
	PROFIT BEFORE TAX (E-F) (G)		8.990	15.130	8.378
Less	TAX (H)		3.387	5.608	3.822
	PROFIT AFTER TAX (G-H) (I)		5.603	9.522	4.556
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		11.520	5.883	9.787
Less	APPROPRIATIONS
		Proposed Dividend	2.925	2.925	5.850
		Tax on Proposed Dividend	0.000	0.000	0.660
		Transfer to General Reserve	0.600	0.960	1.950
	BALANCE CARRIED TO THE B/S		13.598	11.520	5.883
	Earnings Per Share (Rs.)		95.78	162.77	77.88

Expected Sales (2011-2012) : Rs. 200.000 Millions

The above information has been parted by Mr. Paresh.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.42	6.61	3.60
Net Profit Margin (PBT/Sales)	(%)	5.55	10.64	6.56
Return on Total Assets (PBT/Total Assets}	(%)	13.17	25.65	20.36
Return on Investment (ROI) (PBT/Networth)		0.37	0.71	0.57
Debt Equity Ratio (Total Liability/Networth)		1.86	1.36	1.69
Current Ratio (Current Asset/Current Liability)		1.97	2.89	1.79

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1. Year of Establishment	Yes
2. Locality of the firm	Yes
3. Constructions of the firm	Yes
4. Premises details	Yes
5. Type of Business	Yes
6. Line of Business	Yes
7. Promoter’s background	------
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%	No
14. Estimation for coming financial year	Yes
15. Capital in the business	Yes
16. Details of sister concerns	Yes
17. Major suppliers	Yes
18. Major customers	Yes
19. Payments terms	Yes
20. Export / Import details	Yes
21. Market information	------
22. Litigations that the firm / promoter involved	------
23. Banking Details	Yes
24. Banking facility details	No
25. Conduct of the banking account	------
26. Buyer visit details	------
27. Financials, if provided	No
28. Incorporation details, if applicable	------
29. Last accounts filed at ROC	------
30. Major Shareholders, if available	------

SUNDRY CREDITORS DETAILS

(Rs. In Millions)

Particulars	31.03.2011	31.03.2010	31.03.2009
Sundry Creditors
- For Goods	11.331	1.537	5.719
- For Expenses	1.436	0.780	0.086
- For Capital Goods	0.000	0.000	0.030
Total	12.767	2.317	5.835

OPERATIONS

The Sales including Job Work and Other Income during the year increased to Rs.163.726 Millions as against Rs.142.822 Millions in the previous year.

The operation for the year resulted Cash Profit of Rs.8.112 Millions as against Rs.11.731 Millions in the previous year.

FINANCE

During the year, with the help of the Directors, Shareholders and banker of the company, the overall financial positions of the company remained satisfactory.

FORM 8

Corporate identity number of the company	U17119GJ1988PTC011700
Name of the company	ESSEN POLYMERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 6, Survey No. 12/2, Junagadh Road, Manavadar – 362630, Gujarat, India
This form is for	Modification of Charge
Type of charge	Book debts Movable property (not being pledge) Floating charge Others
Particular of charge holder	Axis Bank Limited, Titan Near K K V Circle, Kalawad Road, Rajkot-360005, Gujarat, India E-Mail : rajkotbranchhead@axisbank.com
Nature of instrument creating charge	Amendment deed in Hypothecation agreement
Date of instrument Creating the charge	07.02.2011
Amount secured by the charge	Rs. 20.800 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As prescribed by Bank. Terms of repayment As prescribed by Bank. Margin As prescribed by Bank. Extent and operation of the charge Charge will operate as first and exclusive charge in favour of bank till due repayment of loan, interest and any other charge due on it.
Short particulars of the property charged (Including location of the property)	Hypothecation of Plant and Machinery, other movable assets, entire current assets (present and future ) of the company -More particularly mentioned in amendment deed in hypothecation agreement executed with Bank.
Charge identification number of the charge to be modified	10133918
Date of instrument modifying the charge	02.12.2009
Particulars of the present modification	The charge is modified to further secure by plant and machinery of the company along with past hypothecated properties and modifications. There is no change in amount of charge of Rs. 20.800 Millions.

TRADE REFERENCES

v Qatar Petro Chemical Company

v Rathna Packaging India Private Limited

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Generator

· Tools and Spares

· Vehicles

· Air Conditioners

· Water Cooler

· Typewriter

· Computers

· Furniture and Fixture

· Mobile Instrument

· Laboratory 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 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. 49.21
UK Pound	1	Rs. 77.75
Euro	1	Rs. 64.58

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.