MIRA INFORM REPORT

Report Date :

08.09.2012

IDENTIFICATION DETAILS

Name :	SHIN-ETSU POLYMER INDIA PRIVATE LIMITED
Registered Office :	Plot No.OZ-12, Hi-Tech SEZ, SIPCOT Industrial Growth Centre, Orangadam Sriperumbudur – 602 105, Kancheepuram District, Tamilnadu
Country :	India
Financials (as on) :	31.12.2011
Date of Incorporation :	01.10.2007
Com. Reg. No.:	18-064928
Capital Investment / Paid-up Capital :	Rs.480.000 millions
CIN No.: [Company Identification No.]	U29299TN2007PTC064928
TAN No.: [Tax Deduction & Collection Account No.]	CHES28631B
PAN No.: [Permanent Account No.]	AALCS2482E
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Mobile Keypads, Connectors and Silicone and Plastic Products.
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 1496000
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. Profitability of the company is under pressure. 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 – 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/ Factory :	Plot No.OZ-12, Hi-Tech SEZ, SIPCOT Industrial Growth Centre, Orangadam Sriperumbudur – 602 105, Kancheepuram District, Tamilnadu, India
Tel. No.:	91-44-67112800
Fax No.:	91-44-67112801
E-Mail :	ytorimar@shinpoly.co.jp

DIRECTORS

As on 27.04.2012

Name :

Mr. Yoshiaki Torimaru

Designation :

Director

Address :

4-759-3-602, Sakurag Cho Omiya Ku, Saitama Shi Saitama, Japan 3300854

Date of Birth/Age :

06.08.1961

Date of Appointment :

22.08.2008

DIN No.:

02372894

Name :

Mr. Osamu Kowada

Designation :

Director

Address :

28 Floor, Mont Kiara Condo JLN 1, 70C Off BKT Kiara, Wpersekutuan, Kuala Lumpur, Malaysia 050480

Date of Birth/Age :

28.05.1962

Date of Appointment :

22.08.2008

DIN No.:

02378645

Name :

Mr. Toru Takayama

Designation :

Director

Address :

11-4 Mihashi, 2-Chome Omiya-Ku, Saitama Shi, Saitama, Japan 3300856

Date of Birth/Age :

02.11.1952

Date of Appointment :

22.08.2008

DIN No.:

02378709

Name :

Mr. Shunichi Zenna

Designation :

Managing Director

Address :

1-10-16-602, Senjusakuragi, Adachi-Ku, Tokyo, Japan 1200045

Date of Birth/Age :

19.07.1957

Date of Appointment :

29.11.2011

DIN No.:

05127197

Name :

Mr. Masashi Ogawa

Designation :

Director

Address :

3-27-3, Kamimeguro Meguro Ku, Tokyo, Japan 1530061

Date of Birth/Age :

18.01.1969

Date of Appointment :

27.04.2012

DIN No.:

05152175

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	Date of cessation	Company/ LLP Status	Defaulting status
1	U29299TN2007PTC064928	SHIN-ETSU POLYMER INDIA PRIVATE LIMITED	Director	27/04/2012	27/12/2011	-	Active	NO

KEY EXECUTIVES

Name :	Ms. Ritu Singh
Designation :	Secretary
Address :	P-57, Ved Nagar Colony, Deori Road, Agra – 280 001, Uttar Pradesh, India
Date of Birth/Age :	14.08.1985
Date of Appointment :	02.01.2012
PAN No.:	BXEPS7430N

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 27.04.2012

Names of Shareholders	No. of Shares
Shin-Etsu Polymer Company Limited, Japan	28050000
Mitshubishi Corporation, Japan	3300000
Mitshubishi Corporation India Private Limited, India	1650000
Shin-Etsu Polymer Singapore Private Limited, Singapore	15000000
Total	48000000

As on 27.04.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	96.56
Bodies corporate	3.44
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Mobile Keypads, Connectors and Silicone and Plastic Products.

Products :

Item Code No. (ITC Code)	3910
Product Description	Mobile Keypads, Connectors and Silicone and Plastic Products

PRODUCTION STATUS (AS ON 31.12.2009)

Particulars	Licensed Capacity	Installed Capacity	Actual Production Quantity (Units)
Key Pads	24000000	24000000	18235434

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

v Bank of Tokyo-Mitsubishi UFJ Limited

v Central Bank of India

v HDFC Bank Limited

Facilities :

Unsecured Loans	31.12.2011 (Rs. in Millions)	31.12.2010 (Rs. in Millions)
Other external commercial borrowings unsecured	98.098	100.044
Total	98.098	100.044

Banking Relations :	--
Auditors :
Name :	ASA and Associates Chartered Accountants
Address :	KS House, 118, Shahpur Jat, New Delhi – 110 049, India
Income-tax PAN of auditor or auditor's firm :	AAAFA4690A
Holding Company :	Shin-Etsu Polymer Company Limited, Japan
Associates :	v Shin-Etsu Polymer, Malaysia v Shin-Etsu Polymer Europe, Netherlands v Suzhou Shin-Etsu Polymer Company Limited, China v Shin-Etsu Polymer Shanghai Company Limited, China v Shin- Etsu Polymer Hungary KFT, Hungary v Shin-Etsu Polymer, Mexico
Other Related Parties :	v Shin-Etsu Polymer Singapore Pte Limited, Singapore v Mitsubishi Corporation, Japan v Mitsubishi Corporation India Private Limited, India (CIN No.: U45201DL1996PTC079069)

CAPITAL STRUCTURE

As on 27.04.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
48000000	Equity Shares	Rs.10/- each	Rs.480.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
48000000	Equity Shares	Rs.10/- each	Rs.480.000 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2011	31.12.2010	31.12.2009
SHAREHOLDERS FUNDS
1] Share Capital		480.000	480.000	380.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.000	0.000	0.000
4] (Accumulated Losses)		(105.942)	(29.497)	(28.870)
NETWORTH		374.058	450.503	351.130
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		98.098	100.044	217.244
TOTAL BORROWING		98.098	100.044	217.244
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		472.156	550.547	568.374
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		438.138	461.357	480.414
Capital work-in-progress		14.775	14.775	4.014
INVESTMENT		0.000	0.000	0.000
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	28.861	23.310	54.725
	Sundry Debtors	13.773	24.563	156.634
	Cash & Bank Balances	15.764	80.512	244.653
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	11.660	8.276	11.044
Total Current Assets		70.058	136.661	467.056
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2.776	13.355	381.507
	Other Current Liabilities	45.050	37.395
	Provisions	3.400	12.320	2.839
Total Current Liabilities		51.226	63.070	384.346
Net Current Assets		18.832	73.591	82.710
MISCELLANEOUS EXPENSES		0.411	0.824	1.236
TOTAL		472.156	550.547	568.374

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2011	31.12.2010	31.12.2009
	SALES
		Income	65.972	379.860	521.184
		Other Income	6.848	24.771	26.531
		TOTAL	72.820	404.631	547.715
Less	EXPENSES
		Cost of Production	41.418	286.934	447.243
		Administrative Expenses	75.017	69.122	87.455
		Preliminary Expenses (Written off)	0.412	0.412	0.412
		Loss on Obsolete Asset	0.000	4.851	0.000
		TOTAL	116.847	361.319	535.110
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		(44.027)	43.312	12.605
Less/ Add	DEPRECIATION/ AMORTISATION		32.307	31.709	32.608
	PROFIT/ (LOSS) BEFORE TAX		(76.334)	11.603	(20.003)
Less	TAX		0.111	12.230	0.250
	PROFIT/ (LOSS) AFTER TAX		(76.445)	(0.627)	(20.253)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		(29.497)	(28.870)	(8.617)
	BALANCE CARRIED TO THE B/S		(105.942)	(29.497)	(28.870)
	EARNINGS IN FOREIGN CURRENCY
		Export on FOB Basis	NA	NA	6.655
	TOTAL EARNINGS		NA	NA	6.655
	IMPORTS
		Raw Materials	NA	NA	399.941
		Capital Goods	NA	NA	10.407
		Others	NA	NA	3.517
	TOTAL IMPORTS		NA	NA	413.865
	Earnings/ (Loss) Per Share (Rs.)		(1.59)	(0.01)	(0.66)

KEY RATIOS

PARTICULARS		31.12.2011	31.12.2010	31.12.2009
PAT / Total Income	(%)	(104.98)	(0.15)	(3.70)
Net Profit Margin (PBT/Sales)	(%)	(115.71)	3.05	(3.84)
Return on Total Assets (PBT/Total Assets}	(%)	(15.02)	1.94	(2.11)
Return on Investment (ROI) (PBT/Networth)		(0.20)	0.03	(0.06)
Debt Equity Ratio (Total Liability/Networth)		0.40	0.36	1.71
Current Ratio (Current Asset/Current Liability)		1.37	2.17	1.22

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
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

Note:

The registered office of the company has been shifted from Padma Complex, 3^rd Floor, 467, Anna Salai, Nandanam, Chennai – 600 035, Tamilnadu to the present address w.e.f. 18.12.2008.

BUSINESS

The net loss of the Company for the year 31^st December, 2011 is Rs.76.445 millions as against Rs.0.627 million in the previous year.

FIXED ASSETS:

v Leasehold Land

v Factory Building

v Furniture and Fixtures

v Computers

v Office Equipment

v Plant and Machinery

v Electrical Installations

v Internal Transport Equipment

v Tools, Moulds and Dies

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.55.52
UK Pound	1	Rs.88.49
Euro	1	Rs.70.20

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
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	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.