MIRA INFORM REPORT

Report Date :

24.07.2012

IDENTIFICATION DETAILS

Name :	SPRINGFEEL POLYURETHANE FOAMS PRIVATE LIMITED
Registered Office :	No.64, Velacherry Main Road, Sankaren Avenue, Velacherry, Chennai – 600042, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	15.12.1997
Com. Reg. No.:	18-039600
Capital Investment / Paid-up Capital :	Rs.30.400 Millions
CIN No.: [Company Identification No.]	U25209TN1997PTC039600
TAN No.: [Tax Deduction & Collection Account No.]	CHES05672C
PAN No.: [Permanent Account No.]	AADCS0733N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Flexible Polyurethane Foam.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

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

Maximum Credit Limit :	USD 440000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported to be fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered for normal business dealing 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, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

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

RBI DEFAILTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAILTERS’ 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.

LOCATIONS

Registered Office :	No.64, Velacherry Main Road, Sankaren Avenue, Velacherry, Chennai – 600042, Tamilnadu, India
Tel. No.:	91-44-22447908/ 27498005
Fax No.:	91-44-22447908
E-Mail :	dilipkumar@springfeel.in info@springfeel.in
Website :	http://www.springfeel.in
Administrative Office/ Factory :	51/2A, Kelambakkam - Vandalur Road, Pudupakkam Village, Chengalpattu Taluk, Kanchipuram District – 603103, Tamilnadu, India
Tel. No.:	91-44-27498005

DIRECTORS

(AS ON 26.08.2011)

Name :

Mr. Dilip Kumar Sundaravadivelu

Designation :

Director

Address :

Appartment No.801, Regalia, No.3,4,5 Sardar Patel Road, Chennai – 600113, Tamilnadu, India

Date of Birth/Age :

16.09.1971

Date of Appointment :

15.12.1997

DIN No.:

00492563

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U65993TN1993PTC026436	PILLAYAR INVESTMENTS AND FINANCE PRIVATE LIMITED	Director	22-12-93	22-12-93	Active	NO
2	U25209TN1997PTC039600	SPRINGFEEL POLYURETHANE FOAMS PRIVATE LIMITED	Director	15-12-97	15-12-97	Active	NO

Name :

Mr. Sameer Malhotra

Designation :

Director

Address :

Flat No.4-A, Kings Mead Apartments, No.14/3, South Mada Street, Srinagar Colony, Saidapet, Chennai – 600015, Tamilnadu, India

Date of Birth/Age :

13.03.1972

Date of Appointment :

15.12.1997

DIN No.:

00492623

Name :

Mr. Venkatanarayana Yanepalli

Designation :

Director

Address :

B Block, Flat No.F2, Taj Palace, Flat No.113/3, New Market Street, Chennai – 600094, Tamilnadu, India

Date of Birth/Age :

20.06.1949

Date of Appointment :

07.04.2004

DIN No.:

00492666

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 26.08.2011)

Names of Shareholders	No. of Shares
Dilip Kumar Sundaravadivelu	420000
Kousalya S.	144700
Pillayar Investments and Finance Private Limited, India	750000
Dr. P. R. Sundaravadivelu	200000
V. Manjula	200000
R. Niranjini	100000
S. Roop Kumar	220000
S. Vasanth Kumar	170000
D. Ranjini	30000
Sameer Malhotra	50000
Shashi Malhotra	40000
Kumaravel Packaging Private Limited, India	50000
R. Padmanaban	210000
Indira Ramachandran	30000
G. Kavitha	30000
Y. S. Chakravarthi	50000
Ravi Chilukuri	345300
Total	3040000

(AS ON 30.09.2011)

Equity Shares Break – up

Category	Percentage
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	11.35
Bodies corporate	26.31
Directors or relatives of directors	51.82
Other top fifty shareholders	10.52
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Flexible Polyurethane Foam.

Products :

Products Description	Item Code No.
Polyurethane Foam	39211310

Brand Name :

“Finesse”

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Polyurethane Foam	MT	NA	3900	3004.864

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· ING Vysya Bank Limited

185, Anna Salai, Near TVS, Chennai – 600006, Tamilnadu, India

Facilities :

Secured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
From Banks – Term Loans	40.027	50.479
(Due Within a year Rs.10.452 Millions)
- Cash Credit	52.534	55.304
- Buyers Credit	19.350	0.000
Total	111.911	105.783
Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
IFST (Due Within a Year Rs.10.934)	27.221	35.258
From Others	10.487	12.708
(Due within a year Rs.1.307)
Total	37.708	47.966

Banking Relations :	--
Auditors :
Name :	SRI and Company Chartered Accountant
Address :	27, Ramakrishna Street, North Usman Road, T. Nagar, Chennai – 600017, Tamilnadu, India
Tel No.:	91-44-28140850/ 28141131
PAN No.:	AAXFS6133K
Email :	sricoindia@gmail.com sricochennai@gmail.com
Website :	http://www.srico.co.in

CAPITAL STRUCTURE

(AS ON 26.08.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
3500000	Equity Shares	Rs.10/- each	Rs.35.000 Million
100000	Preference Shares	Rs.100/- each	Rs.10.000 Millions
	Total		Rs.45.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3040000	Equity Shares	Rs.10/- each	Rs.30.400 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		30.400	30.400	30.400
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		79.175	61.032	42.915
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		109.575	91.432	73.315
LOAN FUNDS
1] Secured Loans		111.911	105.783	121.457
2] Unsecured Loans		37.708	47.966	56.167
TOTAL BORROWING		149.619	153.749	177.624
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		259.194	245.181	250.939
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		179.630	189.908	18.616
Capital work-in-progress		0.000	1.518	0.000
INVESTMENT		0.000	0.000	0.483
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	34.060	26.951	25.113
	Sundry Debtors	57.323	46.119	42.521
	Cash & Bank Balances	19.090	8.361	5.535
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	28.778	29.629	34.049
Total Current Assets		139.251	111.060	107.218
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	29.534	30.914	30.136
	Other Current Liabilities	12.382	12.934	6.133
	Provisions	17.771	13.457	2.109
Total Current Liabilities		59.687	57.305	38.378
Net Current Assets		79.564	53.755	68.840
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		259.194	245.181	250.939

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	556.693	489.516	505.568
		Other Income	18.228	15.703	6.790
		TOTAL	574.921	505.219	512.358
Less	EXPENSES
		TOTAL	547.129	470.420	511.544
	PROFIT BEFORE TAX		27.792	34.799	0.814
Less	TAX		0.000	0.000	0.000
	PROFIT AFTER TAX		27.792	34.799	0.814
	IMPORTS
		Raw Materials	146.346	150.104	231.968
	TOTAL IMPORTS		146.346	150.104	231.968
	Earnings Per Share (Rs.)		9.14	11.45	0.26

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	4.83	6.89	0.16
Net Profit Margin (PBT/Sales)	(%)	4.99	7.11	0.16
Return on Total Assets (PBT/Total Assets}	(%)	8.72	11.56	0.65
Return on Investment (ROI) (PBT/Networth)		0.25	0.38	0.01
Debt Equity Ratio (Total Liability/Networth)		1.91	2.31	2.95
Current Ratio (Current Asset/Current Liability)		2.33	1.94	2.79

LOCAL AGENCY FURTHER INFORMATION

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	No
Name of Person Contacted	No
Designation of Contact person	No
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-----
Estimation for coming financial year	No
Capital in the business	Yes
Details of sister concerns	No
Major Suppliers	No
Major Customers	No
Payments Terms	No
Export/ Imports Details (If applicable)	No
Market Information	-----
Litigations that the firm/ Promoters Involved in	-----
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----
Buyer visit details	-----
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes
PAN of Proprietor/Partner/Director, if available	No
Passport No of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No

OPERATIONS:

the Company has achieved a turnover of Rs.556.693 Millions as against Rs.489.516 Millions in the previous year, registering an increase of 13.72%. The Company recorded a net profit of Rs.27.792 Millions as against Rs. 34.799 Millions in the previous year.

The Company has completed a year during which it the top line grew on par with industry levels, but the bottom line shrunk for the following reasons. Firstly, in the last couple of years fresh capacity addition has taken place in several parts of the country in both ends of the investment size spectrum. Secondly, the export market demand from the European and US markets has shrunk considerably. The local end user industry demand has also significantly dropped in response to the governments' initiative to curb inflation by increasing the interest rates steeply. The combination of the above situations has resulted in a situation of surplus of supply over demand in the flexible foam market.

The raw material prices world over fluctuated during the whole year and never stabilised. The foam manufacturers rolled back prices in a desperate effort to improve capacity utilisation. As a result, the margins came under severe pressure resulting in a reduced bottom line in contrast to an increased top line. This trend of excess of supply over demand is likely to intensify further in the coming year on account of new production facilities becoming operational coupled with no sign of a revival in the demand for flexible foam.

The capacity utilisation for the year was at 76% as against 70% in the previous year. In the current year the Company is expected to register an improvement in its turnover as well as the bottom line by improving its capacity utilisation. The Company has initiated measures to counter the shrinking bottom line and in this regard initiated a plan to foray in to the B2C market by launching a retail brand in the next fiscal.

The WTG recorded a generation of 43,12,028 units as against 46,45,940 units in the previous year, on account of reduced wind availability in comparison. Also, the very poor evacuation of the TNEB in the last fiscal also resulted in reduces earnings by the WTG The evacuation of power generated has been the worst ever since the purchase of the windmill despite the fact that there was a severe power shortage prevailing throughout the state.

The Directors recommend a annual dividend of 10% considering the performance achieved in the year 2010-2011.

FORM 8:

This form is for	Modification of charge
Charge identification number of the modified	80026475
Corporate identity number of the company	U25209TN1997PTC039600
Name of the company	SPRINGFEEL POLYURETHANE FOAMS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	No.64, Velacherry Main Road, Sankaren Avenue, Velacherry, Chennai – 600042, Tamilnadu, India dilipkumar@springfeel.in
Type of charge	Immovable Property Book Debts Movable Property Floating Charge
Particular of charge holder	· ING Vysya Bank Limited 185, Anna Salai, Near TVS, Chennai – 600006, Tamilnadu, India giridharvvrn@ingvysyabank.com
Nature of description of the instrument creating or modifying the charge	Supplemental Deed of Hypothecation. Supplemental Agreement Relating to Deposit of Title Deeds.
Date of instrument Creating the charge	07.12.2011
Amount secured by the charge	Rs.240.900 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Terms of Repayment CC : On Demand STL(Sub limit to CC) : On Demand LC : On Demand BC (Sub limit to LC) : On Demand Pre-Settlement : On Demand CMS : On Demand TL(Existing) : No Change Margin CC: 25% on stocks and book debts. STL(Sub limit to CC) : 25% on stocks and book debts. LC : 10% BC (Sub limit to LC) : 10% Pre-Settlement : Cash margin Nil CMS : Nil TL(Existing) : No Change Extent and Operation of the charge Exclusive charge on the current assets of the company both present and future. Continuing exclusive charge on the fixed assets of the company both present and future. Documents of title to goods purchased under LC till acceptance. Accepted bills of exchange until retirement of the bills under LC. First charge on the immovable property of the company.
Short particulars of the property charged	Entire current assets and the fixed assets of the company both present and future. Documents of title to goods purchased under LC till acceptance. Accepted bills of exchange until retirement of the bills under LC. The immovable property bearing 1. Survey No./Paimash No.976 and 977 survey No.51/2A situated at No.41, Pudupakkam Village, Tiruporur Panchayat Union, Chengalpattu Taluk, Kanchipuram Dt.(3.03 acres land) 2. The property (3.70 acres land) bearing S.No.5/6 situated at No.41,Pudupakkam Village, Chengalpattu Taluk, Kanchipuram Dt, in Tiruporur Panchayat Union, in Patta No.51, Chengalpattu. 3. All that piece and parcel of the property free hold land measuring 3.40 acres situated in S.No.106/A1 at No.36, Pannikinaru Village, Udumalpet Taluk, Coimbatore Dt. and 4. All that piece and parcel of free hold land measuring 1.80 acres situated in at No.107/B1 at No.36, Pannikinaru Village, Udumalpet Taluk, Coimbatore District.
Particulars of the present modification	The total limit has been enhanced from Rs.220.900 Millions to Rs.240.900 Millions as follows: CC : Rs.80.000 Millions (Enhanced from Rs.70.000 Millions) STL (Sub limit to CC) : Rs.(70.000) Millions LC : Rs.75.000 Millions (Enhanced from Rs.65.000 Millions) BC (Sub limit to LC) : Rs.(75.000) Millions (Enhanced from Rs.[65.000] Millions) Pre-Settlement : Rs.15.000 Millions CMS : Rs.3.000 Millions TL(Existing) : Rs.67.900 Millions All other terms and conditions are remain same.

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Office Equipment

· Furniture and Fixture

· Vehicles

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.55.76
UK Pound	1	Rs.86.80
Euro	1	Rs.67.43

INFORMATION DETAILS

Report Prepared by :

BYI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
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	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

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.