MIRA INFORM REPORT

Report Date :

01.06.2012

IDENTIFICATION DETAILS

Name :	POLYSPIN LIMITED
Registered Office :	414/1, Railway Feeder Road, Cholapuram South, Rajapalayam – 626 139, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	13.01.1972
Com. Reg. No.:	18-006102
Capital Investment / Paid-up Capital :	Rs.15.500 millions
CIN No.: [Company Identification No.]	U25209TN1972PLC006102
TAN No.: [Tax Deduction & Collection Account No.]	MRIP00520C
PAN No.: [Permanent Account No.]	AAACP8909Q
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of HDPE/ PP Woven Big Bags.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

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

Maximum Credit Limit :	USD 192000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Business is active. Payments are reported to be slow. 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/ Administrative Office/ Factory :	414/1, Railway Feeder Road, Cholapuram South, Rajapalayam – 626 139, Tamilnadu, India
Tel. No.:	91-4563-222148/ 284501/ 502
Fax No.:	91-4563-230246/ 284505
E-Mail :	polyspin@vsnl.com
Website :	www.polyspin.in

DIRECTORS

As on 05.09.2011

Name :

Mr. Rammohan Raja Ramji

Designation :

Managing Director

Address :

6, P.S.K. Nagar, Rajapalayam Virudhunagar District, Rajapalayam – 626 108, Tamilnadu, India

Date of Birth/Age :

07.06.1970

Date of Appointment :

18.07.2001

DIN No.:

00109393

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	L51909TN1985PLC011683	Polyspin Exports Limited	Managing director	29-07-11	25-09-91	Active	NO
2	U65993TN1991PLC021040	Polyspin Investments and Finance Company Limited	Director	27-03-93	27-03-93	Strike off	NO
3	U51101TN1995PLC030094	Ramona Vegetapak Limited	Director	07-02-95	07-02-95	Strike off	NO
4	U25209TN1972PLC006102	Polyspin Limited	Managing director	01-04-10	18-07-01	Active	NO
5	U17111TN1995PTC029985	Energyspin Private Limited	Director	15-05-06	15-05-06	Active	NO

Name :

Mr. Arjuna Raja Rammohan Raja

Designation :

Director

Address :

6, P.S.K. Nagar, Rajapalayam Virudhunagar District, Rajapalayam – 626 108, Tamilnadu, India

Date of Birth/Age :

26.12.1943

Date of Appointment :

13.01.1972

DIN No.:

00107661

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	U25209TN1972PLC006102	Polyspin Limited	Director	13-01-72	13-01-72	Active	NO
2	L51909TN1985PLC011683	Polyspin Exports Limited	Managing director	01-04-10	29-03-85	Active	NO
3	U65993TN1986PTC012848	Ramji Investments Private Limited	Director	31-03-86	31-03-86	Active	YES
4	U65993TN1991PLC021040	Polyspin Investments and Finance Company Limited	Director	27-03-93	27-03-93	Strike off	NO
5	U24239TN2007PTC064397	Ramona Cosmaceuticals Private Limited	Director	07-08-07	07-08-07	Active	NO
6	U17111TN1995PTC029985	Energyspin Private Limited	Director	10-08-07	10-08-07	Active	NO

Name :

Mrs. Ramji Durga

Designation :

Director

Address :

Chola Villa, A/31, Sankarankoil Road, Opposite Madras Chip Board Limited, Rajapalayam – 626 117, Tamilnadu, India

Date of Birth/Age :

23.09.1972

Date of Appointment :

05.12.1997

DIN No.:

00109397

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	U17111TN1995PTC029985	Energyspin Private Limited	Director	30-01-95	30-01-95	Active	NO
2	U52321TN1984PLC010886	Silver Sacks Limited	Director	19-01-96	19-01-96	Strike off	NO
3	U25209TN1972PLC006102	Polyspin Limited	Whole-time director	01-04-10	05-12-97	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 05.09.2011

Names of Shareholders	No. of Shares
A. Rammohan Raja	17850
R. Vijayalakshmi	20000
R. Durga	17250
R. Ramji	37850
S.V. Ravi	1700
Cholapackaging Private Limited, India	250
K. Lakshminarayanan	100
S. Kalyanam	25000
P.S. Ramanathan	5000
R. Sridharan	5000
S. Renganathan	6000
R. Rajalakshmi	2500
S. Renganathan HUF	14000
S. Renganathan	1500
R. Rajalakshmi	1000
Total	155000

As on 05.09.2011

Equity Share Breakup	Percentage of Holding
Category
Directors or relatives of directors	64.00
Other top fifty shareholders	36.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of HDPE/ PP Woven Big Bags.

Products :

Item Code No. (ITC Code)	3923
Product Description	PP Woven Jumbo Bags

v Baffle bags / Q bags

v Tubular coated bags 

v Asbestos plate bags 

v Normal u-panel bags

v Container bags

v Full discharge bags 

v One/Two loop bags  

v Single/Double/Triple sift-proof bags

v UN certified bags

v Under sling bags 

v Circular bulk bags

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	31.03.2011
Licensed Capacity	(Does not come under Licensed Industry)
Installed Capacity	3400 MTs
Production of HDPE/PP Woven Fabrics/Sacks (Kgs.)	2239236

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

City Union Bank Limited, 149, Big Street, Kumbankonam, Tanjore District – 621 001, Tamilnadu, India

Facilities :

Secured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
I) Term Loan
From City Union Bank Limited	0.000	1.338
II) Others
1. Packing Credit Loan from CUB	10.798	7.464
CUB-FDBP	26.498	23.387
CUB-Supply Bills	0.000	2.722
CUB- OLCC	7.092	9.477
CUB- Short Term Loan	16.827	14.239
CUB- Buyer's Credit	6.877	0.000
CUB - WCDL	0.000	0.000
2. CUB Loan against Deposit	1.515	3.142
Total	69.607	61.769

Unsecured Loans	31.03.2011 Rs. In Millions	31.03.2010 Rs. In Millions
Fixed Deposits
From Directors and Shareholders	0.000	0.000
From Others	11.785	4.785
Interest Accrued and Payable on Deposits	0.014	0.068
Sundaram Finance Limited (HP Loan)	1.269	0.486
Total	13.068	5.339

Banking Relations :	--
Financial Institution :	Sundaram Finance Limited
Auditors :
Name :	K.V. Raman Chartered Accountant
Address :	42, Sevalpatti South Street, Rajapalayam – 626 117, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AASPR3952L
Associate Companies :	v Polyspin Exports Limited v Energyspin Private Limited v Ramona Filaments v Ramona Industries

CAPITAL STRUCTURE

As on 05.09.2011

Authorised Capital :

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

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
155000	Equity Shares	Rs.100/- each	Rs.15.500 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		15.500	15.500	15.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		35.208	35.209	35.209
4] (Accumulated Losses)		(2.615)	(5.676)	(8.844)
NETWORTH		48.093	45.033	41.865
LOAN FUNDS
1] Secured Loans		69.607	61.769	47.605
2] Unsecured Loans		13.068	5.339	4.666
TOTAL BORROWING		82.675	67.108	52.271
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		130.768	112.141	94.136
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		28.181	23.718	20.119
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		6.796	7.296	6.455
DEFERRED TAX ASSETS		5.555	5.555	5.400
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	48.408	32.894	33.965
	Sundry Debtors	38.061	38.298	25.252
	Cash & Bank Balances	13.012	10.325	7.651
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	14.204	8.621	5.074
Total Current Assets		113.685	90.138	71.942
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors & Other Current Liabilities	22.164	13.996	9.490
	Provisions	1.285	0.570	0.290
Total Current Liabilities		23.449	14.566	9.780
Net Current Assets		90.236	75.572	62.162
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		130.768	112.141	94.136

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	272.850	217.123	264.255
		Other Income	1.965	7.966	1.224
		TOTAL (A)	274.815	225.089	265.479
Less	EXPENSES
		Manufacturing and Other Expenses	265.721	209.957	244.063
		(Increase)/ Decrease in Stocks	(6.093)	0.082	5.902
		TOTAL (B)	259.628	210.039	249.965
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.187	15.050	15.514
Less	INTEREST (D)		6.962	7.123	8.228
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.225	7.927	7.286
Less/ Add	DEPRECIATION/ AMORTISATION (F)		4.885	4.606	5.098
	PROFIT BEFORE TAX (E-F) (G)		3.340	3.321	2.188
Less	TAX (H)		0.715	0.153	(0.490)
	PROFIT AFTER TAX (G-H) (I)		2.625	3.168	2.678
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(5.676)	(8.844)	(11.522)
Less	Depreciation pertaining to earlier years withdrawn		(0.436)	0.000	0.000
	BALANCE CARRIED TO THE B/S		(2.615)	(5.676)	(8.844)
	EARNINGS IN FOREIGN CURRENCY		228.383	165.717	249.657
	Earnings Per Share (Rs.)		16.94	20.44	17.28

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	0.96	1.41	1.01
Net Profit Margin (PBT/Sales)	(%)	1.22	1.53	0.83
Return on Total Assets (PBT/Total Assets}	(%)	2.35	2.92	2.38
Return on Investment (ROI) (PBT/Networth)		0.07	0.07	0.05
Debt Equity Ratio (Total Liability/Networth)		2.21	1.81	1.48
Current Ratio (Current Asset/Current Liability)		4.85	6.19	7.36

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) 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	No
9) Name of person contacted	No
10) Designation of contact person	No
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	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
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

Note:

The situation of the registered office of the company was changed from No.6, P.S.K. Nagar, Rajapalayam – 626 108 to the present address w.e.f. 07.06.2005.

REVIEW OF OPERATIONS:

The overall performance of the Company has been improved in terms of Production and Turnover. During 2010-11 all industries in Tamilnadu are facing severe power shortage and shutdown in most of the days. Only 70% of sanctioned power has been supplied by TNEB. Despite this they are managed to achieve increased production by compared to the last year. Moreover severe labour shortage prevailing has forced them to pay more for manpower. Against all these odds, they have managed to achieve a better result through better planning in procurement of Raw Materials, austerity measures and better selling prices.

To conserve reserves for future funds requirements, the directors are not recommending any dividend distribution.

FUTURE PROSPECTS:

With significant reduction in wastage and overheads and with optimization of production facilities and product mix, the Directors are hopeful of presenting better results for the coming year

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2011 (Rs. in millions)
i) Letter of Credit	12.242

Bankers Charges Report as per Registry

Corporate identity number of the company	U25209TN1972PLC006102
Name of the company	POLYSPIN LIMITED
Address of the registered office or of the principal place of business in India of the company	414/1, Railway Feeder Road, Cholapuram South, Rajapalayam – 626 139, Tamilnadu E-Mail: polyspin@vsnl.com
This form is for	Modification of charge
Charge identification number of the modified	90287472
Type of charge	Immovable Property
Particular of charge holder	CIN No.: L65110TN1904PLC001287 City Union Bank Limited, 149, Big Street, Kumbankonam, Tanjore District – 621 001, Tamilnadu, India E-Mail: shares@cityunionbank.com
Nature of description of the instrument creating or modifying the charge	No instrument executed only letter for continuation of equitable mortgage dated 16.03.11 confirming the extension of e. m. on 15.03.2011.
Date of instrument Creating the charge	15.03.2011
Amount secured by the charge	Rs.114.000 millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest: Rate of interest on enhanced ILC/FLC/STL is 13.50% p.a. Rate of interest on PC limit is 10.25% p.a. Rate of interest on FDBP limit is 10.25% p.a. No change in interest/charges on other limits. Terms of Repayment: No change in repayment Margin: No change in margin Extent and Operation of the charge: Extension of equitable mortgage already created shall continue to be remain as security for modified total credit facilities of Rs.114.000 millions
Short particulars of the property charged	Landed property site together with factory building at Asilapuram Village, Cholapuram South to the extent of 8.34 acres, land and building situated South Cholapuram Village to the extent of 2.54 acres and building bearing Door No.7, in one ground and 1363 sq.ft at Bawa Road, Plot No.15, S.No.2493 Mylapore, Chennai.
Date of latest modification prior to the present modification	15.04.2009
Particulars of the present modification	Bank sanctioned the enhancement of following limits. 1. Packing Credit Limit is enhanced from Rs.12.000 millions to Rs.15.000 millions. 2. ILC/FLC/STL/Buyer's Credit Limit is enhanced from Rs.30.000 millions to Rs.40.000 millions. 3. Post shipment limit is enhanced from Rs.40.000 millions to Rs.45.000 millions. 4. Bank Guarantee Limit is Rs.1.000 million. 5. Working Capital Demand Loan Limit is Rs.3.000 millions. 6. OLCC Limit is Rs.10.000 millions Overall Limit enhanced to Rs.114.000 millions

FIXED ASSETS:

v Land

v Building

v Workers and Staff Rest House

v Plant and Machinery

v Vehicles

v Furniture and Office Equipment

v Library

v Work-in-Progress (Building)

WEBSITE DETAILS:

PROFILE:

POLYSPIN, the ISO 9001:2008 certified Corporate, is located in green, pollution-free rural landscape, far away from the din of cities. It is well connected by road, rail and air. It is 2 hours drive from Madurai airport as well as Tuticorin sea port. Madurai is just one hour’s flight from Chennai International Airport.

Started in 1972 to make HDPE/PP bags, POLYSPIN commenced full fledged FIBC plants in 1996. Over the years, POLYSPIN has developed an integrated facility for FIBC production with periodical upgradation and innovation.

POLYSPIN has strong customer base, nurtured and serviced by dedicated work force, always responsive to customer needs and expectations.

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.56.42
UK Pound	1	Rs.87.38
Euro	1	Rs.69.95

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	2
--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		27

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.