MIRA INFORM REPORT

Report Date :

12.03.2012

IDENTIFICATION DETAILS

Name :	SRIRAM FOAMS PRIVATE LIMITED
Registered Office :	W-101, 3^rd Floor, IInd Avenue, Anna Nagar, Chennai-600040, Tamilnadu
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	10.04.2006
Com. Reg. No.:	18-59477
Capital Investment / Paid-up Capital :	Rs. 2.000 Millions
CIN No.: [Company Identification No.]	U25209TN2006PTC059477
TAN No.: [Tax Deduction & Collection Account No.]	CHES25996F
PAN No.: [Permanent Account No.]	AAJCS8059H
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Moulded PU Product and Foams
No. of Employees :	50 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 14168
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 fair. Business is active. Payments are reported to be slow but correct. The company can be considered for small 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.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

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

INFORMATION PARTED BY

Name :	Mr. Swami
Designation :	Accountant
Contact No.:	91-44-42171888
Date :	27.02.2012

LOCATIONS

Registered Office :	W-101, 3^rd Floor, IInd Avenue, Anna Nagar, Chennai-600040, Tamilnadu, India
Tel. No.:	91-44-42171888
Fax No.:	91-44-42172020
E-Mail :	muthukar@shriramfoams.com sriramfoams@rediffmail.com support@sriramfoams.com soorasiva@yahoo.com
Website :	http://www.sriramfoams.com
Area :	1000 Sq. ft
Location :	Rented
Factory :	SF. 123/2A7, Perumal Koin Street, Periya Mathur, Chennai-600068, Tamilnadu, India
Area :	2000 Sq. ft
Location :	Owned

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Arunachalam Thirumurthi
Designation :	Director
Address :	No. 8, Subramanian Street, Vetri Nagar, Peravallur, Chennai-600082, Tamilnadu, India
Date of Birth/Age :	20.05.1969
Qualification :	Diploma in Chemical Technology
Date of Appointment :	10.04.2006
DIN No.:	01632673

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	U51909TN2005PTC056948	Zion Enviro Systems Private Limited	Director	18/07/2005	18/07/2005	31/03/2006	Active	NO
2	U25209TN2006PTC059477	Sriram Foams Private Limited	Director	10/04/2006	10/04/2006	-	Active	NO
3	U41000TN2011PTC080353	Purion Distilled Water Private Limited	Director	28/04/2011	28/04/2011	-	Active	NO

Name :	Mr. Pampaiyan Muthukumar
Designation :	Managing Director
Address :	72, Balaji Nagar, Padikuppam Road, Anna Nagar, Chennai-600040, Tamilnadu, India
Date of Birth/Age :	05.07.1971
Qualification :	Diploma in Chemical Technology
Date of Appointment :	10.04.2006
DIN No.:	01632673

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	U51909TN2005PTC056948	Zion Enviro Systems Private Limited	Director	18/07/2005	18/07/2005	31/03/2006	Active	NO
2	U25209TN2006PTC059477	Sriram Foams Private Limited	Director	10/04/2006	10/04/2006	-	Active	NO
3	U41000TN2011PTC080353	Purion Distilled Water Private Limited	Director	28/04/2011	28/04/2011	-	Active	NO

KEY EXECUTIVES

Name :	Mr. Swami
Designation :	Accountant

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
A Thirumurthi	80000
M radhika	20000
P. Muthukumar	80000
T. Malarvizhi	20000
Total	200000

AS ON 30.09.2011

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

BUSINESS DETAILS

Line of Business :	Manufacturer and Exporter of Moulded PU Product and Foams
Products :	Flexible Rigid Specialty
Exports :
Products :	Moulded PU Foams
Countries :	Iran, Dubai
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers :

· Wholesaler

· Retailer

No. of Employees :

50 Approximately

Bankers :

• Bank of India, Kolathur Branch, No. 25, Redhills High Road, Chennai-600099, Tamilnadu, India
• State Bank of India
• Syndicate Bank

Facilities :

Cash Credit Rs. 4.000 millions

Secured Loans	31.03.2011 (Rs. In Millions)	31.03.2010 (Rs. In Millions)
Cash credit with Bank of india	1.045	4.078
Tata Ace – Bank of India	0.000	0.056
Term Loan – Bank of India	1.863	2.222
Ford – Kotak Loan	0.000	0.185
Car Loan – HDFC Bank	0.581	0.038
Loan from Directors (secured by Deposits which are in the name of directors)	0.170	0.170
Reliance (Tata Ace Loan)	0.134	0.268
Total	3.793	7.017

Banking Relations :	----
Auditors :
Name :	Sunder Rajan and Associates Chartered Accountant
Address :	7, Vysasarpadi, Gangadharan Street, Nungambakkam, Chennai – 600034, Tamilnadu, India
Tel. No.:	91-44-28261955/28234855
Fax No.:	91-44-42081955
Pan No.:	AADPS5150J

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs. 10/- each	Rs. 2.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
200000	Equity Shares	Rs. 10/- each	Rs. 2.000 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		2.000	2.000	2.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1.542	1.011	0.651
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3.542	3.011	2.651
LOAN FUNDS
1] Secured Loans		3.793	7.017	6.414
2] Unsecured Loans		0.000	0.000	0.772
TOTAL BORROWING		3.793	7.017	7.186
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		7.335	10.028	9.837
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6.414	6.071	6.007
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1.111	1.150	1.164
	Sundry Debtors	4.733	7.835	4.716
	Cash & Bank Balances	0.036	0.057	0.058
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2.227	1.634	1.503
Total Current Assets		8.107	10.676	7.441
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	5.476	5.495
	Other Current Liabilities	0.755	0.511	3.039
	Provisions	0.955	0.716	0.578
Total Current Liabilities		7.186	6.722	3.617
Net Current Assets		0.921	3.954	3.824
MISCELLANEOUS EXPENSES		0.000	0.003	0.006
TOTAL		7.335	10.028	9.837

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	Sales
		Income	40.763	27.880
		Other Income	0.917	0.131
		TOTAL (A)	41.680	28.011	26.009
Less	EXPENSES
		Cost of Materials	27.844	18.872
		Directors Remuneration	1.488	1.320
		Selling and Distribution Expenses	0.465	0.156
		Administrative Expenses	1.312	0.460
		Other Direct Expenses	1.203	0.610
		Communication Expenses	0.144	0.129
		Insurance Expenses	0.068	0.062	23.855
		Miscellaneous Expenses	0.160	0.324
		Personnel Expenses	3.744	2.483
		Rent	0.264	0.329
		Exchange Rate Fluctuation Loss	0.008	0.000
		Repairs and Maintenance	1.372	0.768
		Rates and Taxes	0.150	0.142
		Travelling and Conveyance	0.482	0.135
		Bad Debts W/ off	0.336	0.013
		Preliminary Expenses Written Off	0.004	0.004
		TOTAL (B)	39.044	25.807	23.855
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2.636	2.204	2.154
Less	FINANCIAL EXPENSES (D)		0.945	0.873	1.127
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		1.691	1.331	1.027
Less/ Add	DEPRECIATION/ AMORTISATION (F)		0.921	0.832	0.953
	PROFIT BEFORE TAX (E-F) (G)		0.770	0.499	0.074
Less	TAX (I)		0.239	0.138	0.140
	PROFIT AFTER TAX (G-I) (J)		0.531	0.361	(0.066)
	Earnings Per Share (Rs.)		2.66	1.80	(0.33)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	1.27	1.29	(0.25)
Net Profit Margin (PBT/Sales)	(%)	1.88	1.78	NA
Return on Total Assets (PBT/Total Assets}	(%)	5.30	2.98	0.55
Return on Investment (ROI) (PBT/Networth)		0.22	0.17	(0.02)
Debt Equity Ratio (Total Liability/Networth)		3.09	4.56	4.08
Current Ratio (Current Asset/Current Liability)		1.12	1.59	2.06

LOCAL AGENCY FURTHER INFORMATION

NOTE:

The Registered office of the company has been shifted from No. 21, Venkat Nagarkolathur, Chennai – 600099, Tamilnadu, India to the present address w.e.f 18.02.2008.

OPERATIONS:

The company earned a profit of Rs. 0.770 million against Rs. 0.498 million in the previous year. Liability for income tax (including deferred tax and fringe benefit tax) is estimated at Rs. 0.239 million leaving a distributable profit of Rs. 0.531 million (preivous year – Rs. 0.360 million)

The company is hopeful of increasing the sales and net profit further in view of strengthening into new premises which is larger in capacity and cheaper in cost.

BANKERS CHARGES REPORT AS PER REGISTRY:

This form is for

Modification of charge

Charge identification number of the modified

10015509

Corporate identity number of the company

U25209TN2006PTC059477

Name of the company

SRIRAM FOAMS PRIVATE LIMITED

Address of the registered office or of the principal place of business in India of the company

W-101, 3^rd Floor, IInd Avenue, Anna Nagar, Chennai-600040, Tamilnadu, India

Type of charge

Book Debts

Movable Property

Immovable

Particular of charge holder

Bank of India, Kolathur Branch, No. 25, Redhils High Road, Chennai-600099, Tamilnadu, India

E-mail : Chennai_ssandco@airtelbroadband.in

Nature of description of the instrument creating or modifying the charge

1. Hypothecation –cum-Loan Agreement
2. Term Loan Agreement (IFD-1)
3. Hypothecation Agreement (Stocks/ book debts – L-481) 2 Nos.
4. Letter confirming Equitable Mortgage

All dated 18.09.2007 and relate to one and the same modification.

Date of instrument Creating the charge

18.09.2007

Amount secured by the charge

Rs. 7.060 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

Interest @ 0.50% over BOIPLR with a minimum of 13.75% p.a.

Terms of Repayment

Working Capital: Repayable on demand.

Term Loan I: Repayable in 84 equated monthly installments of Rs. 0.053 Million each commencing form 28.02.2008.

Term Loan II: Repayable in 60 equated monthly installments of Rs. 0.005 Million each commencing from October 2007.

Margin

Cash Credit – 25%

Book Debts – 40%

Term Loan I-25%

Term Loan II-25%

Extent and Operation of the charge

The hypothecated assets/ Mortgaged immovable properties of the Company shall be held as security for the due repayment of the present enhanced overall Credit Limit of Rs. 7.060 Million together with interest, costs, charges and other expenses by the Company to the Bank as recorded in the Books of Accounts of the Bank

Others

The enhanced overall Credit Limit of Rs. 7.060 Millions comprises of:

Facility	Rs. In Millions
Cash and Credit (Stocks)	4.000 Millions enhanced form Rs. 2.450 Millions
CC (Book Debts) Sub _Limit	{3.000) Millions (Fresh)
Term Loan I	2.850 Millions (Fresh)
Term Loan II	0.210 Million (fresh)
Total	Rs. 7.060 Millions

Short particulars of the property charged

Equitable Mortgage of the Company’s Leasehold Rights of the immovable property comprising of land and building and other structure, machinery and plant and other fixtures and fittings erected and installed thereon situate at Mathur Village, Ambattu Taluk (More specifically described in the Annexure)

Hypothecation of vehicle (TATA-ACE 4 wheeler) purchased out of the Term Loan Facility

Particulars of the present modification

By thee present modification, the credit facility sanctioned to the Company has now been enhanced from Rs. 2.450 Millions to Rs. 7.060 Millions described in the Annexure.

TRADE REFERENCES:

• Radhekrishna Trading Company – Tamilnadu

FIXED ASSETS:

• Land
• Factory Building
• Computer
• Furniture
• Office equipment
• Vehicles
• Electrical fittings
• Plant and machinery

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	Yes
12) Profitability for last three years	--
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	--
15) Capital in the business	Yes
16) Details of sister concerns	No
17) Major suppliers	No
18) Major customers	No
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	Yes
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 & 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.50.02
UK Pound	1	Rs.79.01
Euro	1	Rs.66.18

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	4
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	4
--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	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 & 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.