MIRA INFORM REPORT

Report Date :

23.10.2012

IDENTIFICATION DETAILS

Name :	MANDHANA POLYMERS PRIVATE LIMITED
Registered Office :	40 Heer Mani Ratan, CHS, Bangur Nagar, Mumbai-400090 Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	28.01.1988
Com. Reg. No.:	11-046025
Capital Investment / Paid-up Capital :	Rs.3.350 millions
CIN No.: [Company Identification No.]	U24130MH1988PTC046025
TAN No.: [Tax Deduction & Collection Account No.]	MUMM20307A
PAN No.: [Permanent Account No.]	AABCM8444N
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Pipes and Fittings, Sheets, Blocks, Valves, Injection Moulded Plastic Products, etc.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (42)

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

Maximum Credit Limit :	USD 104000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Profitability of the company appears to be low. However, Net worth of the company appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitment. The company can be considered normal for 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 – 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

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ 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 :	40 Heer Mani Ratan, CHS, Bangur Nagar, Mumbai-400090 Maharashtra, India
Tel. No.:	91-22-28798071 / 28775105
Fax No.:	91-22-28798874
E-Mail :	harishchandak1@indiatimes.com mandhanapolymers@rediffmail.com arunsales@vsnl.net info@mandhanapolymers.com sales@mandhanapolymers.com
Factory :	4606/7/8, Plastic Zone, G.I.D.C., Sarigam-396155, District Bulsar, Gujarat, India.
Telefax:	91- 260-2780 940 / 2781338
E-Mail :	works@mandhanapolymers.com

DIRECTORS

As on 29.09.2011

Name :	Mr. Madhusudan Nandlall Mandhana
Designation :	Director
Address :	D-11, Gnaga Jyoti, Bangur Nagar, Goregoan (West), Mumbai-400090, Maharashtra, India
Date of Birth/Age :	15.01.1968
Date of Appointment :	11.05.1992
DIN No.:	00295774
Name :	Mr. Kamalkishore Nandlal Mandhana
Designation :	Director
Address :	D-12, Gnaga Jyoti, Bangur Nagar, Goregoan (West), Mumbai-400090, Maharashtra, India
Date of Birth/Age :	18.10.1970
Date of Appointment :	27.12.2003
DIN No.:	00316299

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2011

Names of Shareholders	No. of Shares
Mandhana Nandlall	800
Mandhana Chunkadevi	1810
Mandhana Madhusudan	6560
Mandhana Kamal Kishore	6340
Mandhana Durgadevi	3500
Mandhana Sunita	4100
Mandhana Nandlal Karta of Nandlal Mandhana (HUF)	190
Mandhana Finlease Private Limited, India	10000
Anisha Mandhana	100
Sakshi Mandhana	100
Total	33500

Equity Share Break up (Percentage of Total Equity)

As on 29.09.2011

Category	Percentage
Bodies corporate	29.85
Directors or relatives of Directors	70.15
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Pipes and Fittings, Sheets, Blocks, Valves, Injection Moulded Plastic Products, etc.

PRODUCTION STATUS AS ON 31.03.2011

Installed Capacity

900 M.T. Per Annum

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· Indian Overseas Bank, Plot No. 7, Bhanumathi Premises Co-Op Society Limited, Bangur Nagar, Goregaon (West), Mumbai - 400090, Maharashtra, India

Facilities :

Secured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
From Indian Overseas Bank Limited Cash Credit, Bank Guarantee and L/C facilities taken against hypothecation of stock and Book Debts, Counter Indemnity of the Company and personal guarantee of directors	7.851	6.631
Indian Overseas Bank Secured against hypothecation of Plant and Machinery and personal guarantee of directors.	1.146	1.867
Indian Overseas Bank – Term Loan Secured against hypothecation of machinery and equitable mortgage by deposit of title deed of land and factory building and personal guarantee of directors.	0.000	1.550
Kotak Mahindra Prime Limited Secured against Car	0.149	0.244
Total	9.146	10.292
Unsecured Loan	31.03.2011 (Rs. in Millions)	31.03.2010 (Rs. in Millions)
From Director	0.571	0.546
From Body Corporate	9.565	7.674
From Shareholders	3.309	1.788
Total	13.445	10.008

Banking Relations :	--
Auditors :
Name :	S. S. Rathi and Company Chartered Accountants
Address :	401, Shri Shiv Datta Reddy Apartment, Station Road, Goregaon (West), Mumbai- 400062, Maharashtra, India
Telefax:	91-22-28757415/28762159
E-Mail :	ssrathica@gmail.com
PAN No.:	AAOFS2521C

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
40000	Equity Shares	Rs.100/- each	Rs.4.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
33500	Equity Shares	Rs.100/- each	Rs.3.350 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		3.350	3.350	3.350
2] Share Application Money		2.300	3.232	4.000
3] Reserves & Surplus		20.548	19.759	19.875
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		26.198	26.341	27.225
LOAN FUNDS
1] Secured Loans		9.146	10.292	9.303
2] Unsecured Loans		13.444	10.008	8.818
TOTAL BORROWING		22.590	20.300	18.121
DEFERRED TAX LIABILITIES		0.646	0.993	0.286
TOTAL		49.434	47.634	45.632
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		13.699	15.603	16.558
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	16.242	13.155	14.146
	Sundry Debtors	32.215	25.164	18.247
	Cash & Bank Balances	2.094	2.542	1.686
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	4.371	4.637	3.788
Total Current Assets		54.922	45.498	37.867
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	15.877	9.043	8.628
	Other Current Liabilities	2.367	3.867
	Provisions	0.943	0.557	0.165
Total Current Liabilities		19.187	13.467	8.793
Net Current Assets		35.735	32.031	29.074
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		49.434	47.634	45.632

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	84.159	72.736	NA
		Other Income	NA	NA	NA
		TOTAL (A)	NA	NA	NA
Less	EXPENSES (B)		NA	NA	NA
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5.350	5.609	NA
Less	FINANCIAL EXPENSES (D)		2.504	2.384	NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2.846	3.225	NA
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1.962	2.194	NA
	PROFIT BEFORE TAX (E-F) (G)		0.884	1.031	NA
Less	TAX (H)		0.095	1.147	NA
	PROFIT AFTER TAX (G-H) (I)		0.789	(0.116)	NA
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		13.359	13.475	NA
	BALANCE CARRIED TO THE B/S		14.148	13.359	NA
	IMPORTS
		Raw Materials	3.889	4.437	NA
	TOTAL IMPORTS		3.889	4.437	NA
	Earnings Per Share (Rs.)		23.58	(3.48)	NA

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
Net Profit Margin (PBT/Sales)	(%)	1.05	1.42	NA
Return on Total Assets (PBT/Total Assets}	(%)	1.29	1.69	NA
Return on Investment (ROI) (PBT/Net worth)		0.03	0.04	NA
Debt Equity Ratio (Total Liability/Net worth)		1.59	1.28	0.99
Current Ratio (Current Asset/Current Liability)		2.86	3.38	4.31

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	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 two years	Yes
12]	Profitability for last two 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	No
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
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATION:

The Company achieved higher turnover in compare to previous year the working results however, do not reflect the improvement increase in raw material costs, additional incidence of power, interest etc could not be fully passed on besides, it is somewhat usual in a tough and tight market to face rejections and payment-withholdings at times on unjustified grounds to a level beyond normal, all these bring in negative effect in working computations. Fabrications jobs which are more rewarding do not show any push up in the increased turnover, in a sum total net result is profits instead of showing improvement are somewhat down.

During the year, the company completed scheduled repayment of major term loan taken to finance expansion of sheet division.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company

U24130MH1988PTC046025

Name of the company

MANDHANA POLYMERS PRIVATE LIMITED

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

40 Heer Mani Ratan, CHS, Bangur Nagar, Mumbai-400090 Maharashtra, India

Email: harishchandak1@indiatimes.com

This form is for

Modification of charge

Charge identification (ID) number of the charge to be modified

90163633

Type of charge

· Immovable property

· Any interest in immovable property

· Book debts

· Movable property (not being pledge)

Particular of charge holder

Indian Overseas Bank, Plot No. 7, Bhanumathi Premises Co-Op Society Limited, Bangur Nagar, Goregaon (West), Mumbai - 400090, Maharashtra, India

Email: goregaonbr@ntserver.iobnet.co.in

Nature of instrument creating charge

1) Letter of Hypothecation ( FOR Securing Machineries/Goods/Book-Debts)

2) Supplementary Narration

Date of instrument Creating the charge

04.03.2011

Amount secured by the charge

Rs.28.100 Millions

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

Rate of Interest

LC/LG - DP/DA upto 90 days - Commission as per C O circular in force and interest as may be stipulated by BANK from time to time

Terms of Repayment

The Borrowers shall repay the amount on demand .

Margin

LC DP/DA - 25% in form of Fixed Deposits

Extent and Operation of the charge

The Charge will operate to the extent to satisfy all credit facilities aggregating to Rs. 13.707 Millions

Short particulars of the property or asset(s) charged (including complete address and location of the property)

Hypothecation by way of first charge on all Stocks at factory building at plot no. 4606, 4607 and 4608 Plastic Zone GIDC Sarigam Umergaon Distt Valsad and Book Debts of the Company

Hypothecation by way of first charge of all Plant and Machineries and Goods fixed or lying loose in the premises as above at Sarigam Umergaon Distt Valsad and Co Registered Office in Mumbai

EM of land and building at plot no. 4606, 4607 and 4608 Plastic Zone GIDC Sarigam Umergaon Distt Valsad

Whether any of the property or interest therein under reference is not registered in the name of the company

Yes

If yes, in whose name it is registered

Plot as above registered in the name of GIDC

Date of instrument modifying the charge

01.08.2008

Particulars of the present modification

The Charge is modified and enhanced as under .

	Existing	Revised
LC/LG	35,00,000	50,00,000
Cash Credit	75,00,000	75,00,000
Term Loan I- satisfied completely	1,20,00,000	1,20,00,000
Term loan -II D. P. 12.07 lacs	36,00,000	36,00,000
TOTAL	266,00,000	281,00,000

FIXED ASSETS:

· Leaehold Land

· Building

· Plant and Machinery

· Electric Installations

· Motor Cycle

· Dies and Moulds

· Furniture and Fixture

· Office Equipment

· Typewriter

· Fire Equipment

· Computer

· Motor Car

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 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.53.67
UK Pound	1	Rs.86.05
Euro	1	Rs.70.07

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	4
--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		42

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.