MIRA INFORM REPORT

Report Date :

02.08.2013

IDENTIFICATION DETAILS

Name :	SANSTAR BIOPOLYMERS LIMITED
Formerly Known As :	SANTOSH MAIZE PORDUCTS LIMITED
Registered Office :	"Sanstar House" Near Parmal Under Bridge, Opposite - Suvidha Shopping Centre, Paldi, Ahmedabad – 380007, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	22.03.1983
Com. Reg. No.:	04-009047
Capital Investment / Paid-up Capital :	Rs.14.848 Millions
CIN No.: [Company Identification No.]	L51100GJ1983PLC009047
TAN No.: [Tax Deduction & Collection Account No.]	AHMS01522D
PAN No.: [Permanent Account No.]	AACCS7445M
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Starches.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

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

Maximum Credit Limit :	USD 760000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. Trade relations are reported as fair. Business is active. Payment terms are usually correct. The company can be considered for business dealings at usual trade terms and conditions. Note: Even though the company appears to be listed in the registrar of companies, the listing details are not available.

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 – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

We are living in a world where volatility and uncertainty have become the New Normal. We saw a change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once powerful countries in Europe are now fighting for bankruptcy. We have taken growth in the developing part of the world for granted but economic growth in China and India has begun to slow. Companies that were synonymous with their product categories just a few years ago are now no longer in existence. Kodak, the inventor of the digital camera had to wind up its operations, HMV, the British entertainment retailing company and Borders, once the second largest bookstore have shut down due to their inability to evolve their business models with the changing time. Readers’ Digest, Thomson Register are no more !

There is another megatrend happening. The World order is changing as economic power shifts from West to East. According to McKinsey study, it took Britain more than 100 years to double its economic output per person during its industrial revolution and the US later took more than 50 years to do the same. More than a century later, China and India have doubled their GDP per capital in 12 and 18 years respectively. By 2020, emerging Asia will become the world’s largest consuming block, overtaking North America.

The years after the outbreak of the global financial crisis, the world economy continues to remain fragile. The Indian economy demonstrated remarkable resilience in the initial years of the contagion but finally lost ground last year. GDP growth slowed down. Currency has been weakening. There is a marked deceleration in agriculture, industry and services. Dampening sentiment led to a cut-back in investment as well as private consumption expenditure.  Inflation remained at high levels fuelled by the pressure from the food and fuel sectors. The large fiscal and current account deficit s continued to cause grave concern. It is imperative that India regains its growth trajectory of 8-9 % sooner than later. This is crucially important given the need to create gainful livelihood opportunities for the millions living in poverty as also the large contingent of young people joining the job market every year.

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.

INFORMATION DENIED BY

Name :	Mr. Arban Mehta
Designation :	Account Department
Contact No.:	91-79-26651819
Date :	31.07.2013

LOCATIONS

Registered Office/ Corporate Office :	"Sanstar House" Near Parmal Under Bridge, Opposite - Suvidha Shopping Centre, Paldi, Ahmedabad – 380007, Gujarat, India
Tel. No.:	91-79-26651819/ 20 / 21
Fax No.:	91-79-26651822
E-Mail :	md@sanstar.in shreyans@sanstar.in
Website :	www.sanstar.in
Mumbai Office :	7B/37, 10th Floor, Navjivan Society, Lamington Road, Mumbai – 400008. Maharashtra, India
Tel. No.:	91-22-23080510
Fax No.:	91-22-23083283
Factory :	“Sanstardham” Sukhpar Road, Post – Sukhpar – 370020 Village – Morgar, Taluka – Bhachau, District – Kutch, Gujarat (India)
Tel. No.:	91-2837-285887
Fax No.:	91-2837-285880/ 1
Middle East Mktg. Office :	Sanstar Bio- Polymers FZC, Dubai, UAE

DIRECTORS

As on: 29.09.2012

Name :	Mr. Gautamchand Chowdhary Sohanlal
Designation :	Managing Director
Address :	13, Mahavir Society, Mahalaxmi Char Rasta, Paldi, Ahmedabad – 380007, Gujarat, India
Date of Birth/Age :	25.12.1957
Qualification :	Graduate
Date of Appointment :	27.09.1985
PAN No.:	AAXPC6655J
DIN No.:	00196397
Name :	Mr. Sohanlal Lalchand Chowdhary
Designation :	Director
Address :	13, Mahavir Society, Mahalaxmi Char Rasta, Paldi, Ahmedabad – 380007, Gujarat, India
Date of Birth/Age :	19.01.1937
Qualification :	Graduate
Date of Appointment :	27.09.1985
PAN No.:	AMPPS9236H
DIN No.:	00200097
Name :	Mr. Sambhav Gautamchand Chowdhary
Designation :	Director
Address :	13, Mahavir Society, Mahalaxmi Char Rasta, Paldi, Ahmedabad – 380007, Gujarat, India
Date of Birth/Age :	23.06.1983
Qualification :	Graduate
Date of Appointment :	30.03.2011
PAN No.:	ADDPC9929Q
DIN No.:	01370802
Name :	Mr. Shreyans Gautamchand Chowdary
Designation :	Director
Address :	13, Mahavir Society, Mahalaxmi Char Rasta, Paldi, Ahmedabad – 380007, Gujarat, India
Date of Birth/Age :	18.03.1985
Qualification :	Graduate
Date of Appointment :	30.03.2011
PAN No.:	AEEPC8072J
DIN No.:	01759527
Name :	Mr. Rahul Rajmal Ranka
Designation :	Director
Address :	3-4-221, Flat No. -302, Lingampally Cross Road, Kachiguda, Barkatpura, Hyderabad – 500034, Andhra Pradesh, India
Date of Birth/Age :	24.06.1986
Date of Appointment :	19.01.2013
DIN No.:	06501681
Name :	Mr. Shiv Kumar Uppal
Designation :	Director
Address :	P-75, NDSE II, New Delhi – 110044, India
Date of Birth/Age :	01.07.1952
Date of Appointment :	19.01.2013
DIN No.:	00162882
Name :	Mr. Shankarlal Jagdishlal Heda
Designation :	Director
Address :	A-103, Akshar Park, Near Maheshwari Seva Samiti, Shahibaug, Ahmedabad – 380004, Gujarat, India
Date of Birth/Age :	17.11.1982
Date of Appointment :	19.01.2013
DIN No.:	00180711
Name :	Mr. Sachin Kanwarlal Kansal
Designation :	Director
Address :	9 Dharmlok Flat, Bhulabhai Park, Kankaria, Ahmedabad – 380022, Gujarat, India
Date of Birth/Age :	13.09.1987
Date of Appointment :	19.01.2013
DIN No.:	03566139

KEY EXECUTIVES

Name :	Mr. Arban Mehta
Designation :	Account Department

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 29.09.2012

SHAREHOLDING DETAILS FILE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on: 29.09.2012

Category	Percentage
Bodies corporate	6.78
Directors or relatives of directors	84.83
Other top fifty shareholders	4.02
Others	4.37
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Starches.

Products :

Product Description	ITC Code
Liquid Glucose	17023000
Starch	11081200

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Karur Vysya Bank, Sakar-VII, Ground Floor, Near Nehru Bridge, Ashram Road, Ahmedabad – 380009, Gujarat, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Long Term Borrowings
Rupee term loans from banks	110.274	0.000
Loans taken for vehicles (Secured Against Hypothecation of Vehicles)	1.643	1.951
Short Term Borrowings
Working capital loans from banks	121.254	108.536
Total	233.171	110.487

Banking Relations :	--
Auditors :
Name :	Mehta Lodha and Company Chartered Accountants
Address :	105 Sakar- I 1st Floor, Near Gandhigram Railway Station, Ashram Road, Ahmedabad, Gujarat, India
PAN No.:	AACFM6805H
Associates :	Sambhav Starch Products Private Limited CIN No.: U15419GJ1984PTC007188 Santosh Starch Products Limited CIN No.: U24299GJ1983PLC006099
Group Company :	Sanstar Limited CIN No.:U15400GJ1982PLC072555 Sandoz Polymers Private Limited CIN No.:U17119GJ1978PTC003150

CAPITAL STRUCTURE

As on: 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000	Equity Shares	Rs.10/- each	Rs.50.000 Millions

Issued :

No. of Shares	Type	Value	Amount
1494000	Equity Shares	Rs.10/- each	Rs.14.940 Millions

Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1484750	Equity Shares	Rs.10/- each	Rs.14.848 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	14.848	14.848
(b) Reserves & Surplus	175.525	152.944
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	190.373	167.792
(3) Non-Current Liabilities
(a) long-term borrowings	111.917	1.951
(b) Deferred tax liabilities (Net)	40.059	36.899
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	151.976	38.850
(4) Current Liabilities
(a) Short term borrowings	300.017	267.411
(b) Trade payables	62.570	64.232
(c) Other current liabilities	30.027	18.003
(d) Short-term provisions	11.892	12.894
Total Current Liabilities (4)	404.506	362.540
TOTAL	746.855	569.182
ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	354.586	274.409
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	34.789	23.472
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	5.069	1.222
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	7.219	7.219
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	401.663	306.322
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	169.201	130.169
(c) Trade receivables	113.552	84.139
(d) Cash and cash equivalents	8.460	7.868
(e) Short-term loans and advances	53.979	40.684
(f) Other current assets	0.000	0.000
Total Current Assets	345.192	262.860
TOTAL	746.855	569.182

SOURCES OF FUNDS		31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		14.848
2] Share Application Money		0.000
3] Reserves & Surplus		133.270
4] (Accumulated Losses)		0.000
NETWORTH		148.118
LOAN FUNDS
1] Secured Loans		145.218
2] Unsecured Loans		172.244
TOTAL BORROWING		317.462
DEFERRED TAX LIABILITIES		36.970
TOTAL		502.550
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		271.218
Capital work-in-progress		0.000
INVESTMENT		1.323
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	100.505
	Sundry Debtors	111.852
	Cash & Bank Balances	5.317
	Other Current Assets	0.000
	Loans & Advances	89.947
Total Current Assets		307.621
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	68.253
	Other Current Liabilities	0.000
	Provisions	9.359
Total Current Liabilities		77.612
Net Current Assets		230.009
MISCELLANEOUS EXPENSES		0.000
TOTAL		502.550

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1254.677	1188.308	1089.169
		Other Income	4.392	10.035	0.004
		TOTAL (A)	1259.069	1198.343	1089.173
Less	EXPENSES
		Cost of materials consumed	821.487	802.107
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(17.062)	(9.390)
		Employee benefit expense	38.956	32.953
		Other expenses	317.488	292.338
		TOTAL (B)	1160.869	1118.008	1010.057
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		98.200	80.335	79.116
Less	FINANCIAL EXPENSES (D)		24.944	13.287	17.382
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		73.256	67.048	61.734
Less/ Add	DEPRECIATION/ AMORTISATION (F)		40.385	36.110	18.941
	PROFIT BEFORE TAX (E-F) (G)		32.871	30.938	42.793
Less	TAX (H)		9.429	10.401	21.327
	PROFIT AFTER TAX (G-H) (I)		23.442	20.537	21.466
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		6.686	17.012	78.143
Less	APPROPRIATIONS
		Transfer to General Reserve	25.000	30.000	82.597
		Proposed Dividend	0.861	0.863
	BALANCE CARRIED TO THE B/S		4.267	6.686	17.012
	Earnings Per Share (Rs.)		15.79	13.83	14.46

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	1.86	1.71	1.97
Net Profit Margin (PBT/Sales)	(%)	2.62	2.60	3.93
Return on Total Assets (PBT/Total Assets}	(%)	4.65	5.68	7.39
Return on Investment (ROI) (PBT/Networth)		0.17	0.18	0.29
Debt Equity Ratio (Total Debt/Networth)		2.16	1.61	2.14
Current Ratio (Current Asset/Current Liability)		0.85	0.73	3.96

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	Yes
10]	Designation of contact person	Yes
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	Yes
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 "Sanstar Towers" Near Parmal Crossing Bridge, Opposite - Suvidha Shopping Centre, Paldi, Ahmedabad – 380007, Gujarat, India to the present address w.e.f. 21.02.2012

UNSECURED LOAN

(Rs. In Millions)

Particular	As on 31.03.2012	As on 31.03.2011
Short Term Borrowings
Loans and advances from related parties	0.000	14.658
Other loans and advances, others	178.763	144.217
Total	178.763	158.875

INDEX OF CHARGES

S.No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	80008933	07/03/2013 *	440,254,500.00	KARUR VYSYA BANK	SAKAR-VII, GROUND FLOOR, NEAR NEHRU BRIDGE, ASHRAM ROAD, AHMEDABAD, Gujarat - 380009, INDIA	B72551773
2	90100985	11/01/2005 *	247,500,000.00	THE KARUR VYSYA BANK LIMITED	ASHRAM ROAD, 'MOTILAL CENTRE', AHMEDABAD, Gujarat - 380009, INDIA	-

Notes: * Date of charge modification

FIXED ASSETS

Tangible Assets

• Land
• Buildings
• Plant and Equipment
• Factory Equipments
• Furniture and Fixtures
• Vehicles
• Office Equipment
• Computer Equipments

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 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.60.74
UK Pound	1	Rs.92.06
Euro	1	Rs.80.60

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	VRN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--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	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		47

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.