MIRA INFORM REPORT

Report Date :

24.08.2013

IDENTIFICATION DETAILS

Name :	ESSEN POLYMERS PRIVATE LIMITED
Registered Office :	Plot No.11, Survey No. 209, Industrial Area, Village Veraval, Taluka Kotdasangani, Rajkot-360024, Gujarat
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	29.12.1988
Com. Reg. No.:	04-011700
Capital Investment / Paid-up Capital :	Rs. 5.850 Millions
CIN No.: [Company Identification No.]	U17119GJ1988PTC011700
Legal Form :	Private Limited Liability Company.
Line of Business :	Manufacture and Seller of Plastic Films, Bags and Sheets as Strategic activity.
No. of Employees :	45 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

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

Maximum Credit Limit :	USD 120000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track record. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. 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.

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 PARTED BY

Name :	Mr. Paresh
Designation :	Commercial Manager
Contact No.:	91-9825074474
Date :	23.08.2013

LOCATIONS

Registered Office / Factory:	Plot No.11, Survey No. 209, Industrial Area, Village Veraval, Taluka Kotdasangani, Rajkot-360024, Gujarat, India
Tel. No.:	91-2827-252018 / 252019 / 252010 / 252658
Mobile No.:	91-9825074474 (Mr. Paresh)
Fax No.:	91-2827-252610
E-Mail :	essen@essenpol.com mnmanvarca@rediffmail.com
Website :	http://www.essenpoly.com
Area :	2000 sq. ft.
Location :	Owned
Works :	Veraval (Shapar), Rajkot, Plot No. 5, Survey no. 209, Industrial Area, Vill : Veraval (Shapar), Taluka : Kotdasangani, District: Rajkot, Gujarat, India

DIRECTORS

AS ON 01.07.2013

Name :	Mr. Girish Chunilal Pandya
Designation :	Managing Director
Address :	“Gayatri Krupa” Parnakuti Society, Rajkot-360005, Gujarat, India
Date of Birth/Age :	01.07.1964
Qualification :	B. Com
Date of Appointment :	01.11.1988
DIN No.:	00029624
Name :	Mr. Jawahar Chunilal Pandya
Designation :	Director
Address :	Shree Gayatri Krupa, 4, Parna Kuti Society, Nana Mava Main Road, Rajkot-360005, Gujarat, India
Date of Birth/Age :	07.05.1961
Qualification :	B. com
Date of Appointment :	01.11.1988
DIN No.:	00029544
Name :	Mr. Vishal Jawahar Pandya
Designation :	Director
Address :	“Gayatri Krupa” 4, Parnakuti Society, Rajkot-360005, Gujarat, India
Date of Birth/Age :	07.06.1986
Date of Appointment :	01.04.2009
DIN No.:	02454844
Name :	Mr. Atulbhai Chunilal Pandya
Designation :	Director
Address :	“Gayatri Krupa” 4, Parnakuti Society, Rajkot-360005, Gujarat, India
Date of Birth/Age :	06.02.1969
Date of Appointment :	01.07.2013
DIN No.:	00029663

KEY EXECUTIVES

Name :	Mr. Paresh
Designation :	Commercial Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 01.07.2013

Names of Shareholders	No. of Shares
Chunilal L. Pandya	3010
Ranjanben C Pandya	2510
Jawahar Pandya	3800
Harshidaben Pandya	5050
J C Pandya – HUF	3310
Vishal Pandya	4000
Girish Pandya	7050
Gitaben Girish Pandya	5300
G. C. Pandya – HUF	4310
A. C. Pandya – HUF	4900
Atul Pandya	7720
Meeta Pandya	4540
Hemalben Pandya	3000
TOTAL	58500

AS ON 01.07.2013

Equity Shares Break Up	Percentage of Holding
Directors or relatives of Directors	100.00
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Manufacture and Seller of Plastic Films, Bags and Sheets as Strategic activity.
Exports :
Countries :	Middle East Countries
Imports :
Products :	Raw Material
Countries :	Qatar
Terms :
Selling :	Cash, Credit (Depend)
Purchasing :	Cash, Credit (Depend)

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Installed Capacity	Actual Production
Plastic Film and Bags	M.T. / Kgs.	3000	1571422.90
Master Batch	M.T. / Kgs.	180	184950.00
Waste	Kgs.	--	50416.20

Note :

1. Actual production does not include the production of Job-work.

2. The figure of production of Master Batch and Waste is inclusive of Captive Consumption.

GENERAL INFORMATION

Customers :

End Users

No. of Employees :

45 (Approximately)

Bankers :

• Axis Bank Limited, Titan Near K. K. V. Circle, Kalawad Road, Rajkot-360005, Gujarat, India
• Punjab National Bank, Jubilee Branchm Jawahar Road, Rajkot-360002, Gujarat, India

Facilities :

Secured Loan	Rs. In Millions 31.03.2013	Rs. In Millions 31.03.2012
LONG TERM BORROWINGS
Term Loans
From Bank
Axis Bank Limited, Rajkot (Secured against hypothecation of Car)	0.000	0.505
SHORT TERM BORROWINGS
Loan repayable on demand
From Bank
Working Capital Finance
From Axis Bank Limited (Secured against hypothecation of Stock of Goods and Book Debts and Collateral Security over Fixed Assets of the company)	9.123	10.613
Vehicle Loan
From Axis Bank Limited (Secured against hypothecation of Car)	0.505	0.498
TOTAL	9.628	11.616

Banking Relations :	--
Auditors :
Name :	M. N. Manvar and Company Chartered Accountant
Address :	504, Star Plaza, Phulchhab Chowk, Rajkot-360001, Gujarat, India
Tel. No.:	91-2827-6627070 / 2455750
PAN No.:	ABSPM6534E
Sister Concern :	Esser Multipack Limited

CAPITAL STRUCTURE

AS ON 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
80000	Equity Shares	Rs.100/- each	Rs. 8.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
58500	Equity Shares	Rs.100/- each	Rs. 5.850 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	5.850	5.850
(b) Reserves & Surplus	24.358	19.576
(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)	30.208	25.426
(3) Non-Current Liabilities
(a) long-term borrowings	22.813	18.368
(b) Deferred tax liabilities (Net)	4.294	3.701
(c) Other long term liabilities	9.000	14.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	36.107	36.069
(4) Current Liabilities
(a) Short term borrowings	9.628	11.111
(b) Trade payables	10.987	13.427
(c) Other current liabilities	1.673	1.278
(d) Short-term provisions	1.840	0.755
Total Current Liabilities (4)	24.128	26.571
TOTAL	90.443	88.066
II. ASSETS
(1) Non-current assets
(a) Fixed Assets	43.232	41.600
(b) Non-current Investments	0.450	0.450
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	1.330	0.702
(e) Other Non-current assets	0.000	0.000
Total Non-Current Assets	45.012	42.752
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	22.629	23.398
(c) Trade receivables	9.090	16.455
(d) Cash and cash equivalents	7.601	0.036
(e) Short-term loans and advances	6.016	5.390
(f) Other current assets	0.095	0.035
Total Current Assets	45.431	45.314
TOTAL	90.443	88.066

SOURCES OF FUNDS		31.03.2011
SHAREHOLDERS FUNDS
1] Share Capital		5.850
2] Share Application Money		0.000
3] Reserves & Surplus		18.145
4] (Accumulated Losses)		0.000
NETWORTH		23.995
LOAN FUNDS
1] Secured Loans		5.634
2] Unsecured Loans		15.549
TOTAL BORROWING		21.183
DEFERRED TAX LIABILITIES		2.947
TOTAL		48.125
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		27.713
Capital work-in-progress		0.000
INVESTMENT		0.450
DEFERREX TAX ASSETS		0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	15.594
	Sundry Debtors	19.659
	Cash & Bank Balances	0.035
	Other Current Assets	0.000
	Loans & Advances	5.249
Total Current Assets		40.537
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	12.737
	Other Current Liabilities	1.418
	Provisions	6.420
Total Current Liabilities		20.575
Net Current Assets		19.962
MISCELLANEOUS EXPENSES		0.000
TOTAL		48.125

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from Operations	147.701	134.352	161.959
		Job Work Income	0.000	0.000	1.735
		Other Income	0.113	0.039	0.032
		TOTAL (A)	147.814	134.391	163.726
Less	EXPENSES
		Cost of Material Consumed	110.368	103.934	127.570
		Employee Benefit Expenses	7.405	9.074	0.000
		Other Expenses	16.119	14.420	20.280
		Loss on Sale of Vehicles	0.000	0.000	0.298
		Exceptional Items	0.005	(0.296)	0.000
		Changes in inventories of finished goods, work in progress and stock in progress	(1.362)	(2.017)	0.880
		TOTAL (B)	132.535	125.115	149.028
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		15.279	9.276	14.698
Less	FINANCIAL EXPENSES (D)		4.438	3.841	3.205
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10.841	5.435	11.493
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3.897	2.736	2.503
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		6.944	2.699	8.990
Less	TAX (H)		2.163	1.268	3.387
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		4.781	1.431	5.603
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		15.029	13.598	11.520
Less	APPROPRIATIONS
		Proposed Dividend	0.000	0.000	2.925
		Transfer to General Reserve	0.000	0.000	0.600
	BALANCE CARRIED TO THE B/S		19.810	15.029	13.598
	EARNINGS IN FOREIGN CURRENCY		NA	NA	0.308
	Earnings / (Loss) Per Share (Rs.)		81.73	24.47	95.78

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	3.23	1.06	3.42
Net Profit Margin (PBT/Sales)	(%)	4.70	2.01	5.55
Return on Total Assets (PBT/Total Assets}	(%)	7.72	3.08	13.17
Return on Investment (ROI) (PBT/Networth)		0.23	0.11	0.37
Debt Equity Ratio (Total Debt /Networth)		1.07	1.16	0.88
Current Ratio (Current Asset/Current Liability)		1.88	1.71	1.97

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	Yes
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
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	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	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	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

Unsecured Loan	Rs. In Millions 31.03.2013	Rs. In Millions 31.03.2012
LONG TERM BORROWINGS
Loans and advances from Related parties
From Directors, Relatives of Directors and Share holders	22.813	17.863
TOTAL	22.813	17.863

CURRENT MATURITIES OF LONG TERM DEBT

(Rs. In Millions)

Particulars	31.03.2012	31.03.2011	31.03.2010
Current maturities of long term debt	NA	NA	NA
TOTAL	NA	NA	NA

NOTE

Registered office has been shifted from Plot No.6 S No.12/2, Junagadh Road, Manavadar, Gujarat, India to the present address w.e.f. 01.02.2010.

PREAMBLE

The company is engaged mainly in the business of manufacture and sale of Plastic Films, Bags and Sheets as Strategic activity. The company also derives income from sale of Plastic Wastes and Scrap which form integral part of manufacturing process which is noncore and non strategic in nature.

FORM 8

Corporate identity number of the company	U17119GJ1988PTC011700
Name of the company	ESSEN POLYMERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot No. 6, Survey No. 12/2, Junagadh Road, Manavadar – 362630, Gujarat, India
This form is for	Modification of Charge
Type of charge	Book debts Movable property (not being pledge) Floating charge Others
Particular of charge holder	Axis Bank Limited, Titan Near K K V Circle, Kalawad Road, Rajkot-360005, Gujarat, India E-Mail : rajkotbranchhead@axisbank.com
Nature of instrument creating charge	Amendment deed in Hypothecation agreement
Date of instrument Creating the charge	07.02.2011
Amount secured by the charge	Rs. 20.800 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest As prescribed by Bank. Terms of repayment As prescribed by Bank. Margin As prescribed by Bank. Extent and operation of the charge Charge will operate as first and exclusive charge in favour of bank till due repayment of loan, interest and any other charge due on it.
Short particulars of the property charged (Including location of the property)	Hypothecation of Plant and Machinery, other movable assets, entire current assets (present and future ) of the company -More particularly mentioned in amendment deed in hypothecation agreement executed with Bank.
Charge identification number of the charge to be modified	10133918
Date of instrument modifying the charge	02.12.2009
Particulars of the present modification	The charge is modified to further secure by plant and machinery of the company along with past hypothecated properties and modifications. There is no change in amount of charge of Rs. 20.800 Millions.

FIXED ASSETS

· Land

· Factory Building

· Plant and Machinery

· Generator

· Tools and Spares

· Vehicles

· Air Conditioners

· Water Cooler

· Typewriter

· Computers

· Furniture and Fixture

· Mobile Instrument

· Laboratory Equipment

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. 64.68
UK Pound	1	Rs. 100.79
Euro	1	Rs. 86.30

INFORMATION DETAILS

Information Gathered by :	PDT
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--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	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

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.