MIRA INFORM REPORT

Report Date :

14.01.2012

IDENTIFICATION DETAILS

Name :	RSA INDUSTRIES PRIVATE LIMITED (w.e.f. 02.05.2000)
Formerly Known As :	RAN POLYMERS PRIVATE LIMITED
Registered Office :	Ranka Bhavan, 110 Dhantoli, Nagpur – 440 012, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	16.08.1999
Com. Reg. No.:	11-121309
Capital Investment / Paid-up Capital :	Rs.7.500 millions
CIN No.: [Company Identification No.]	U24134MH1999PTC121309
TAN No.: [Tax Deduction & Collection Account No.]	NGPR01569B
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturers and Exporters of Specialty Chemicals and Polymers.
No. of Employees :	200 (Approximately)

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 58000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Profitability of the company appears to be low. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

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 :	Ranka Bhavan, 110 Dhantoli, Nagpur – 440 012, Maharashtra, India
Tel. No.:	91-7104-237663 / 236739 / 237160 / 237950 91-712-2523806
Fax No.:	91-7104-236417 91-712-2421729 / 2521729
E-Mail :	sales@ranchemicals.in sales@rsaindustries.in accounts@ranchemicals.in
Website :	http://www.rsaindustries.in
Factory :	Located at Nagpur (Center of India)
Area :	50000 sq. mt.
Capacity :	10000 Tonnes per annum.

DIRECTORS

As on 16.09.2011

Name :	Mr. Sanjay Ishwarlal Ranka
Designation :	Managing Director
Address :	Ranka Bhavan, 110, Dhantoli, Nagpur – 440 012, Maharashtra, India
Date of Birth/Age :	02.10.1955
Date of Appointment :	16.08.1999
DIN No.:	00097833

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	U74999MH1984PTC031856	RAN Chemicals Private Limited	Managing director	16-12-91	16-12-91	Active	NO
2	U24134MH1999PTC121309	RSA Industries Private Limited	Managing director	16-08-99	16-08-99	Active	NO

Name :	Prasanna Dinkar Sohale
Designation :	Whole Time Director
Address :	House No. 360, Opposite Ginni Bazar, Tanga Stand, Dharampeth, Nagpur 440 010, Maharashtra, India
Date of Birth/Age :	21.01.1962
Date of Appointment :	25.08.2000
DIN No.:	00098035
Name :	Mr. Ajay Ramlal Malik
Designation :	Whole Time Director
Address :	1B, Green Park, Civil Lines, Nagpur – 400 001, Maharashtra, India
Date of Birth/Age :	15.02.1963
Date of Appointment :	25.08.2000
DIN No.:	00097946

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 16.09.2011

Names of Shareholders	No. of Shares
Sanjay Ishwarlal Ranka	428439
Sujata Sanjay Ranka	50
Ajay Ishwarlal Ranka	85
Shraddha Sanjay Ranka	50
Sanjay Ishwarlal Ranka jointly with Sujata Sanjay Ranka	96561
Sujata Sanjay Ranka jointly with Sanjay Ishwarlal Ranka	112365
Shraddha Sanjay Ranka jointly with Sanjay Ishwarlal Ranka	112450
Total	750000

As on 16.09.2011

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

BUSINESS DETAILS

Line of Business :

Manufacturers and Exporters of Specialty Chemicals and Polymers.

Products :

Product Description	ITC Code
Acrylic Polymers	3906.90
Kind of Chemical used in Textile Industries	3809.00

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Installed Capacity*	Actual Production
Acrylic Polymer
a) Acrylic Polymer	M.T.	900.00	501.131
b) Formulations	M.T.		58.924
Kind of Chemical used in Textile Industries	M.T.	1320.00	1362.866
Surface Active Agent and its Prepartion	M.T.	168.00	163.601
Others	M.T.	12.00	243.399
By Product / Scrap	M.T.	--	9.650
			2339.571

* As certified by management and relied by auditors. The installed capacity is flexible as the plant is versatile enabling the Company to produce in different capacity and it varies depending upon the products.

GENERAL INFORMATION

No. of Employees :

200 (Approximately)

Bankers :

Bank of India

Bank of India Building, Mezannine Floor, S. V. Patel Marg, Nagpur – 440 001, Maharashtra, India

Facilities :

Secured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Term Loan
From Bank of India (Secured by Equitable Mortgage of immovable properties of the Company situated at Plot No. E-8/1 and E-8/2, MIDC, Nagpur and personal guarantee of Director) (Repayable within on year Rs.0.770 million (Rs.0.681 million))	2.334	3.011
Working Capital Loan
From Bank of India
Cash Credit	25.587	14.502
Export Packing Credit	0.000	1.373
(Secured by a first charge by way of hypothecation of entire stock of raw materials, work in process, finished goods, stores and spares and book debts of the Company and by Collateral Security by way of personal guarantee of Director and Equitable Mortgage of immovable properties of the Company situated at Plot No. E-33/2, MIDC, Nagpur)
Total	27.921	18.886

Unsecured Loans	As on 31.03.2011 Rs. in millions	As on 31.03.2010 Rs. in millions
Interest Free Sales Tax Deferred Liability under Package Scheme of incentives (Repayable within one year Rs.0.492 million (Rs.0.761 million)	0.750	1.511
From Director, their relatives and Shareholders	34.687	44.245
Total	35.437	45.756

Banking Relations :	--
Auditors :
Name :	V. K. Surana and Company Chartered Accountants
Address :	VCA Complex, Civil Lines, Nagpur – 440 001, Maharashtra, India
PAN No.:	AAAFV9754G
Related Party :	RAN Chemicals Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.10/- each	Rs.10.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
750000	Equity Shares	Rs.10/- each	Rs.7.500 millions

(428424 Equity Shares of Rs.10 each fully paid issued to erstwhile Partners in lieu of credit balances in Capital Account on takeover of running business of partnership firm M/s RSA Polymers)

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		7.500	4.286	4.286
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		6.950	4.725	3.906
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		14.450	9.011	8.192
LOAN FUNDS
1] Secured Loans		27.921	18.886	18.951
2] Unsecured Loans		35.437	45.756	48.064
TOTAL BORROWING		63.358	64.642	67.015
DEFERRED TAX LIABILITIES		0.880	0.066	0.000
TOTAL		78.688	73.719	75.207
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.300	23.032	23.849
Capital work-in-progress		0.388	0.404	0.286
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.601
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	49.996	37.927	37.464
	Sundry Debtors	34.895	30.814	28.913
	Cash & Bank Balances	1.058	0.847	0.623
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	6.826	5.145	4.896
Total Current Assets		92.775	74.733	71.896
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	37.381	24.426	21.425
	Other Current Liabilities	0.000	0.000	0.000
	Provisions	0.394	0.024	0.000
Total Current Liabilities		37.775	24.450	21.425
Net Current Assets		55.000	50.283	50.471
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		78.688	73.719	75.207

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Sales	180.440	156.605	124.291
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	EXPENSES
		Office Expenses	NA	NA	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	NA	NA	NA
Less	PROFIT/(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		11.997	10.335	4.406
Less	INTEREST (D)		6.953	7.169	6.895
	PROFIT/(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		5.044	3.166	(2.489)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.273	1.382	1.359
	PROFIT/(LOSS) BEFORE TAX (E-F) (G)		3.771	1.784	(3.848)
Less	TAX (H)		1.546	0.951	(1.448)
	PROFIT/(LOSS) AFTER TAX (G-H) (I)		2.225	0.833	(2.400)
Less	INCOME TAX FOR EARLIER YEARS		0.000	0.013	0.001
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		2.038	1.218	3.619
	BALANCE CARRIED TO THE B/S		4.263	2.038	1.218
	EARNINGS IN FOREIGN CURRENCY		8.763	8.002	4.481
	IMPORTS
		Raw Materials	13.235	7.803	4.775
	TOTAL IMPORTS		13.235	7.803	4.775
	Earnings Per Share (Rs.)		2.97	1.94	(5.60)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	2.09	1.14	(3.10)
Return on Total Assets (PBT/Total Assets}	(%)	3.25	1.82	(4.02)
Return on Investment (ROI) (PBT/Networth)		0.26	0.20	(0.47)
Debt Equity Ratio (Total Liability/Networth)		7.00	9.89	10.80
Current Ratio (Current Asset/Current Liability)		2.46	3.06	3.36

LOCAL AGENCY FURTHER INFORMATION

OPERATION AND PERFORMANCE

The products were better expected in Indian Market with increase market share.

CONTINGENT LIABILITIES NOT PROVIDED FOR

Particulars	As on 31.03.2011 Rs. in millions
Sales Tax	0.060
Central Excise	0.522
Income Tax	0.007
Total	0.589

FORM 8

Corporate identity number of the company	U24134MH1999PTC121309
Name of the company	RSA INDUSTRIES PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Ranka Bhavan, 110 Dhantoli, Nagpur – 440 012, Maharashtra, India
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	80014209
Type of charge	· Immovable property · Book debts · Movable property (not being pledge)
Particular of charge holder	Bank of India Bank of India Building, Mezannine Floor, S. V. Patel Marg, Nagpur – 440 001, Maharashtra, India E-Mail : corpbanking.nagpur1@bankofindia.co.in
Nature of instrument creating charge	1. Supplemental Deed of Hypothecation 2. Extension of Equitable mortgage - Oral Assent 3. Acknowledgement of Debt and Securities for L/Cs
Date of instrument Creating the charge	03.09.2010
Amount secured by the charge	Rs.35.500 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Cash Credit Limit: 4% over base rate, presently 12% p.a. with monthly rests or such other rates as may be advised from time to time. Export Packing Credit, FBP/FBN, L/C: Normal Charges Terms of Repayment On Demand Margin Cash Credit - Stocks - 25%, Cash Credit - Book Debts - 40%, Export Packing Credit - 10%, F.B.P. - NIL, L/C - DA/DP Max. 90 days - 15% Extent and Operation of the charge Existing credit facilities enhanced to Rs.35.500 millions (including EPC Rs.10.000 millions and FBP Rs.10.000 millions) from existing Rs.17.000 millions by way of sanction of additional working capital limits of Rs.12.500 millions and additional L.C. limit of Rs.6.000 millions against first charge by way of hypothecation of all tangible movable assets and book debts of the Company and extension of equitable mortgage of immovable property of the Company.
Short particulars of the property or asset(s) charged (including complete address and location of the property)	· Hypothecation of all tangible movable assets of the Company including all stocks of raw material, work in progress, finished goods, relating to manufacture of poly acrylamide based polymers. · Hypothecation of Book Debts. · Extension of equitable mortgage of factory, land and building and fixed assets situated on Plot No. E33/2, MIDC, Hingna Industrial Area, Nagpur. · Extension of equitable mortgage of factory, land and building situated at Plot No. E-8/1 and E-8/2, MIDC, Hingna Industrial Area, Nagpur.
Particulars of the present modification	Existing credit facilities enhanced to Rs.35.500 millions (including EPC Rs.10.000 millions and FBP Rs.10.000 millions) from existing Rs.17.000 millions by way of sanction of additional working capital limits of Rs.12.500 millions and additional L.C. limit of Rs.6.000 millions against first charge by way of hypothecation of all tangible movable assets and book debts of the Company and extension of equitable mortgage of immovable property of the Company.

FIXED ASSETS

· Leasehold Land

· Building

· Plant and Machinery

· Electrical Installation

· Laboratory Equipments

· Furniture and Fixtures

· Air Conditioners

· Office Equipments

· Computers

· Typewriters

· Vehicles

WEB DETAILS

COMPANY PROFILE

ACTIVITY

Manufacturers and exporters of specialty chemicals and polymers.

Acrylics

Water based emulsions, inverse emulsions, acrylic dispersion in water etc.

Polyester

Water based polyester resin and carboxyl terminated polyester resin and polymeric surfactants

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.51.43
UK Pound	1	Rs.79.10
Euro	1	Rs.66.17

SCORE & RATING EXPLANATIONS

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