MIRA INFORM REPORT

Report Date :

05.03.2012

IDENTIFICATION DETAILS

Name :	SPECIALTY POLYFILMS (INDIA) PRIVATE LIMITED
Registered Office :	Plot No. F – 89, MIDC Area Waluj, Aurangabad – 431136, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	23.03.2000
Com. Reg. No.:	11-125209
Capital Investment / Paid-up Capital :	Rs.29.000 Millions
CIN No.: [Company Identification No.]	U25209MH2000PTC125209
TAN No.: [Tax Deduction & Collection Account No.]	NSKS04309E/ NSKS04348B/ NSKS07046E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing of LLDPE Stretch Cling Films.
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 201100
Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small business 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 (General Details)

Name :	Mr. Raju
Designation :	Accounts Officer
Contact No.:	91-240-2554045
Date :	02.03.2012

LOCATIONS

Registered Office/Factory :	Plot No. F – 89, MIDC Area Waluj, Aurangabad – 431136, Maharashtra, India.
Tel. No.:	91-240-2551015 / 2554045
Fax No.:	91-240-2554046 / 2554046
E-Mail :	specialty@satyam.net.in marketing@specialty-films.com export@specialty-films.com asha@specialty-films.com accounts@specialty-films.com shantanu@specialty-films.com
Website :	http://www.specialty-films.com
Location:	Owned

DIRECTORS

(AS ON 09.09.2011)

Name :	Mr. Shantanu Manohar Deshpande
Designation :	Chairman cum Managing Director
Address :	18 Sahyog Nagar, Ulkanagri Garkheda, Aurangabad – 431005, Maharashtra, India
Date of Birth/Age :	21.09.1969
Date of Appointment :	23.03.2000
DIN No. :	00388944
Name :	Mrs. Asha Shantanu Deshpande
Designation :	Director
Address :	18 Sahyog Nagar, Ulkanagri Garkheda, Aurangabad – 431 005, Maharashtra, India
Date of Birth/Age :	02.12.1972
Date of Appointment :	01.04.2005
DIN No. :	00389026

KEY EXECUTIVES

Name :	Mr. Raju
Designation :	Accounts Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

(AS ON 09.09.2011)

Names of Shareholders	No. of Shares
Shantanu Manohar Deshpande	1765468
Shashank Manohar Deshpande	271645
Madhavi Manohar Deshpande	53550
Asha Shantanu Deshpande	800837
Priya Manohar Deshpande	8500
Total	2900000

(AS ON 09.09.2011)

Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of LLDPE Stretch Cling Films.
Exports :
Countries :	UK, Mexico
Imports :
Products :	Raw Material
Countries :	Qatar, Singapore
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Suppliers :	Reliance
Customers :	· Wholesaler · Retailers · Moser Bear
No. of Employees :	200 (Approximately)
Bankers :	Ø Janata Sahakari Bank Limited, Mumbai Ø Janata Sahakari Bank Limited, Pune Ø HDFC Bank Limited, Aurangabad Ø ICICI Bank Limited, Aurangabad Ø IDBI Bank Limited, Aurangabad Ø United Western Bank Limited, Aurangabad Ø Janata Sahakari Bank Limited, Pune Branch, Aurangabad, Maharashtra, India Ø State Bank of India, Industrial Finance Branch, Jaggi’s Building, Kranti Chowk, Jalna Road, Aurangabad – 431 005, Maharashtra, India
Facilities:	--

Banking Relations :	--
Auditors :
Name :	Ashok Patil and Associates Charted Accountants
Address :	“Veer Shanti”, Kranti Chowk, Aurangabad – 431005, Maharashtra, India
Pan No.:	ABFPP1555R

CAPITAL STRUCTURE

(AS ON 09.09.2011)

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000	Equity Shares	Rs.10/- each	Rs.30.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2900000	Equity Shares	Rs.10/- each	Rs.29.000 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		29.000	29.000	27.000
2] Share Application Money		0.000	0.000	0.052
3] Reserves & Surplus		21.275	11.900	11.720
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		50.275	40.900	38.772
LOAN FUNDS
1] Secured Loans		109.938	124.543	70.912
2] Unsecured Loans		13.586	12.374	12.202
TOTAL BORROWING		123.524	136.917	83.114
DEFERRED TAX LIABILITIES		5.128	5.783	0.000
TOTAL		178.927	183.600	121.886
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		87.621	97.093	12.281
Capital work-in-progress		3.554	0.339	43.333
INVESTMENT		0.110	0.110	0.110
DEFERREX TAX ASSETS		0.000	0.000	0.584
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	52.727	51.831	28.437
	Sundry Debtors	48.727	34.710	22.070
	Cash & Bank Balances	0.953	0.414	3.004
	Other Current Assets	5.732	10.617	6.660
	Loans & Advances	6.460	2.903	14.054
Total Current Assets		114.599	100.475	74.225
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	23.123	12.060	6.680
	Other Current Liabilities
	Provisions	6.107	4.299	4.281
Total Current Liabilities		29.230	16.359	10.961
Net Current Assets		85.369	84.116	63.264
MISCELLANEOUS EXPENSES		2.273	1.942	2.314
TOTAL		178.927	183.600	121.886

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income (Gross Sales)	288.883	190.654	133.054
		Other Income	2.119	0.209	0.373
		TOTAL	291.002	190.863	133.427
Less	EXPENSES
		Office Expenses
		Administrative Expenses	269.345	176.206	125.236
		Advertising Expenses
		TOTAL	269.345	176.206	125.236
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		21.657	14.657	8.191
Less/ Add	DEPRECIATION/ AMORTISATION		12.890	8.093	2.283
	PROFIT BEFORE TAX		8.767	6.564	5.908
Less	TAX		(0.608)	6.384	1.815
	PROFIT AFTER TAX		9.375	0.180	4.093
	Earnings Per Share (Rs.)		3.23	0.06	1.52

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	3.22	0.09	3.07
Net Profit Margin (PBT/Sales)	(%)	3.03	3.44	4.44
Return on Total Assets (PBT/Total Assets}	(%)	4.33	3.32	6.83
Return on Investment (ROI) (PBT/Networth)		0.17	0.16	0.15
Debt Equity Ratio (Total Liability/Networth)		3.14	3.75	2.43
Current Ratio (Current Asset/Current Liability)		3.92	6.14	6.77

LOCAL AGENCY FURTHER INFORMATION

PERFORMANCE:

During the year under consideration, company has achieved gross turnover of Rs. 288.883 millions as compared to the gross turnover of Rs. 190.650 millions of last year at a growth rate of 51.52 % and has earned Cash Profit of Rs. 21.656 millions during this year as compared to Cash Profit of Rs. 14.657 millions of preceeding year.

During the year under consideration, the company has started the production at the expantion made at F-102, MIDC, Waluj, Aurangabad. Hence The Director's hope that operating results of the coming years will be much more encouraging and will result in good profits.

FIXED ASSETS:

v Land

v Buildings

v Goodwill

v Electrical Installation

v Furniture and Fixtures

v Storage Racks

v Office Equipments

v Vehicles

v Plant and Machinery

v Computers etc.

FORM: 8

Corporate identity number of the company	U25209MH2000PTC125209
Name of the company	SPECIALTY POLYFILMS (INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. F – 89, MIDC Area Waluj, Aurangabad – 431136, Maharashtra, India
This form is for	Modification of charge
Type of charge	Immovable property Book debts Movable property (not being pledge) Floating charge Others
Particular of charge holder	State Bank of India, Industrial Finance Branch, Jaggi’s Building, Kranti Chowk, Jalna Road, Aurangabad – 431 005, Maharashtra, India Email: chopade.sbi.co.in@gmail.com
Nature of instrument creating charge	1. Supplemental Agreement of Loan Cum Hypothecation 2. Letter of Arrangement 3. Guarantee Agreement 4. Memorandum for recording extension of mortgage by deposit of title deeds
Date of instrument Creating the charge	24.10.2011
Amount secured by the charge	Rs. 154.900 millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest CC - Int @5.50% above base rate which is presently 10.00%p.a. PER 15.50% with monthly rests TL I - PER-16.25%, TL II- 16.25%, TL -III-17.25% p.a with monthly rests Terms of repayment CC - Repayable on Demand TL III - 57 installments : repayment in 57 monthly installments repayment in 6 monthly installments of Rs 0.200 million plus applicable interest repayment in 12 monthly installments of Rs 0.250 million plus applicable interest repayment in 12 monthly installments of Rs 0.300 million plus applicable interest repayment in 20 monthly installments of Rs 0.450 million plus applicable interest last installment of Rs 0.700 million Margin Raw Materials : Raw Materials Imported and Indigenous - 25%, SFG - 35%, Finished Good - 30%, Domestic receivables - 30% Term Loan - 33%, LC - 25%, Bank Guarantees - 25% Extent and operation of the charge Exclusive first charge on fixed and current assets of the Company Other 1. Personal guarantees of Mr Shantanu Manohar Deshpande, Mrs Asha Shantanu Deshpande, Mr Shashank Manohar Deshpande 2. Assignment of LIC Policies (Surrender value of Rs .130 millions) in the name of Shri Shantanu Deshpande and Shashank Deshpande 3. Lien on STDR No 31115444936 for Rs 1.000 million issued at Industrial Finance Branch Aurangabad
Short particulars of the property charged (Including location of the property)	Hypothecation charge on stock of raw materials, goods in process, consumables, finished goods and book debts and all current assets Hypothecation of existing plant and machinery and plant and machinery purchased out of Term Loans sanctioned to the Company Extension of Equitable mortgage of all the piece and parcel of factory land and building bearing Plot No F-89, MIDC Waluj Aurangabad adm 1800 sq mtrs owned by Company Extension of Equitable mortgage of Plot No F-102, Waluj Industrial Area, Adm 5000 Sq mtrs Extension of Equitable mortgage of Independent Bungalow No 44 Kasliwal Marvel West Gut No 75/1, Beed By pass Road, Village Satara, Aurangabad Adm with built up area 1376 sq ft Equitable mortgage of factory land and Building and Hypothecation of plant and Machineries and other movable assets situated at Plot No F-89, F-102 owned by the company
Whether any of the property or interest therein under reference is not registered in the name of the company. If yes, in whose name it is registers	Yes, Properties in the name of Director
Date of instrument modifying the charge	10.03.2010
Particulars of the present modification	Enhancement in Overall Limit from Rs 122.400 millions to Rs 154.900 millions by increase in Cash Credit Limit of Rs 30 millions (Within CC Limit EPC of Rs 20 millions and Export Bill Discounting Limit of Rs 10 millions) and increase in LC Limit of Rs 1.500 millions and increase in Bank Guarantee Limit of Rs 1.000 million.

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	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	No
12) Profitability for last three years	No
13) Reasons for variation <> 20%	No
14) Estimation for coming financial year	No
15) Capital in the business	No
16) Details of sister concerns	No
17) Major suppliers	Yes
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	--
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	--

CMT REPORT (Corruption, Money Laundering and 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.49.35
UK Pound	1	Rs.78.68
Euro	1	Rs.65.63

SCORE and RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--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	NO
--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 and 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.