MIRA INFORM REPORT

Report Date :

23.02.2013

IDENTIFICATION DETAILS

Name :	SUPREME POLYMERS PRIVATE LIMITED
Registered Office :	133-138, Industrial Area, Jhotwara, Jaipur – 302012, Rajasthan
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	21.01.1995
Com. Reg. No.:	17-009255
Capital Investment / Paid-up Capital :	Rs. 46.002 Millions
CIN No.: [Company Identification No.]	U17100RJ1995PTC009255
TAN No.: [Tax Deduction & Collection Account No.]	JPRS03719C
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing and Selling of Plastic Bags.
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 338000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. There appears some loss during the current year. Reserve of the company appears to be insufficient. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

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

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Letter of Credit : (CRISIL) A4+
Rating Explanation	Having minimal degree of safety regarding timely payment of financial obligation it carry high credit risk.
Date	September 2012

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 :	133-138, Industrial Area, Jhotwara, Jaipur – 302012, Rajasthan, India
Tel. No.:	91-141-2344314
Fax No.:	91-141-2345219
E-Mail :	mukesh@spplgroup.com supreme_jain@yahoo.com
Website :	www.spplgroup.com

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Sanjay Jain
Designation :	Managing director
Address :	46, B-Supreme House, Keshav Path, Suraj Nagar West, Civil Lines, Jaipur – 302001, Rajasthan, India
Date of Birth/Age :	10.06.1968
Date of Appointment :	22.09.1997
DIN No.:	01273163
Name :	Mr. Amar Nath Jain
Designation :	Director
Address :	46, B-Supreme House, Keshav Path, Suraj Nagar West, Civil Lines, Jaipur – 302001, Rajasthan, India
Date of Birth/Age :	18.02.1931
Date of Appointment :	09.02.1999
DIN No.:	01619561
Name :	Mr. Lal Singh Sisodia
Designation :	Director
Address :	5, Nemi Sagar Colony, Queens Road, Opposite C.S.D. Canteen, Jaipur – 302012, Rajasthan, India
Date of Birth/Age :	30.06.1951
Date of Appointment :	09.02.1999
DIN No.:	02434922

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Equity Shareholders	No. of Shares
Sanjay Jain	749990
Ruchira R. Agarwal	125000
Manju Agarwal	125000
Amar Nath Jain	50
Manisha Jain	100
Shivganga Distributors Private Limited, India	50000
Twinkle Traders Private Limited, India	50000
Ashok Kumar Goyal HUF	10
Vinod Kumar Goyal HUF	10
Mukesh Kumar Goyal HUF	10
Ramesh Kumar Goyal HUF	10
Mata Deen Goyal HUF	10
Mahendra Kumar Tak	10
Total	1100200

Names of Preference Shareholders	No. of Shares
Gyan Shankar Investments and Trading Private Limited, India	25000
Sidharth Polysacks Private Limited, India	125000
Emerald Securities Private Limited, India	5000
Tips Securities Private Limited, India	5000
Pearl Securities Private Limited, India	5000
Puneet Securities Private Limited, India	5000
Dhriti Investments Private Limited, India	5000
Ruchira R. Agarwal	28125
Manju Agarwal	28125
Goyal Achal Sampatti Vikas and Niyojan Nigam Limited, India	64750
Sanjay Jain	5000
Satish Bansal	49000
Total	350000

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	9.09
Directors or relatives of directors	90.91
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and Selling of Plastic Bags.

Products :

ITC Code	Product Descriptions
3923.10	HDPE/ PP/ WOVEN SACKS/ BAGS/ FABRICS

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production (Qty)
HDPE/ PP/ BAGS	M.T.	N.A.	4600 p.a.	4207.77

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø The Jammu and Kashmir Bank Limited, Panch Batti, M.I. Road, Jaipur – 302001, Rajasthan, India

Ø State Bank of India, Commercial Branch, Anukampa Tower, Church Road, Jaipur – 302001, Rajasthan, India

Ø State Bank of Bikaner and Jaipur, Tilak Marg, Jaipur – 302005, Rajasthan, India

Ø Jammu and Kashmir Bank Limited, M.A. Road, Srinagar, Kashmir – 190001, Jammu and Kashmir, India

Facilities :

Secured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Secured vehicles loans from Banks	0.000	0.090
Secured term loan from Banks	1.542	1.633
Working Capital Loan	106.040	88.013
Total	107.582	89.736

Banking Relations :	--
Auditors :
Name :	A. Bafana and Company Chartered Accountants
Address :	K-2, Raj Appartments, Keshav Path, Near Ahinsa Circle, C-Scheme, Jaipur – 302001, Rajasthan, India
Tel. No.:	91-141-2372572/ 2375212/ 2373873
Fax No.:	91-141-2363426
Income-tax PAN of auditor or auditor's firm :	AAGFA3909A
Entities in which key management personnel and their relatives are interested :	Ø Sidharth Polysacks Private Limited Ø Alliance Polysacks Private Limited Ø Star Global Endura Private Limited Ø A and J Ind. And Fin. Con. Private Limited Ø Print Bindass Private Limited Ø Catalysts

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1250000	Equity Shares	Rs. 10/- each	Rs. 12.500 Millions
301000	0% Opt. Convertible Redeemable Preference Shares	Rs. 100/- each	Rs. 30.100 Millions
49000	7% Opt. Convertible Redeemable Preference Shares	Rs. 100/- each	Rs. 4.900 Millions
25000	8% Opt. Convertible Redeemable Preference Shares	Rs. 100/- each	Rs. 2.500 Millions
	Total		Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1100200	Equity Shares	Rs. 10/- each	Rs. 11.002 Millions
276000	0% Opt. Convertible Redeemable Preference Shares	Rs. 100/- each	Rs. 27.600 Millions
49000	7% Opt. Convertible Redeemable Preference Shares	Rs. 100/- each	Rs. 4.900 Millions
25000	8% Opt. Convertible Redeemable Preference Shares	Rs. 100/- each	Rs. 2.500 Millions
	Total		Rs. 46.002 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		46.002	46.002	46.002
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		38.676	38.724	38.416
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		84.678	84.726	84.418
LOAN FUNDS
1] Secured Loans		107.582	89.736	127.290
2] Unsecured Loans		2.000	17.000	2.000
TOTAL BORROWING		109.582	106.736	129.290
DEFERRED TAX LIABILITIES		0.000	0.241	0.587
TOTAL		194.260	191.703	214.295
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		45.643	49.136	50.875
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		33.828	35.088	28.304
DEFERRED TAX ASSETS		0.194	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	85.386	67.446	30.198
	Sundry Debtors	42.833	37.878	133.418
	Cash & Bank Balances	9.046	4.154	7.629
	Other Current Assets	1.301	1.855	0.000
	Loans & Advances	17.366	19.280	22.079
Total Current Assets		155.932	130.613	193.324
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	30.491	13.713	49.486
	Other Current Liabilities	8.215	7.334	3.822
	Provisions	2.631	2.087	4.900
Total Current Liabilities		41.337	23.134	58.208
Net Current Assets		114.595	107.479	135.116
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		194.260	191.703	214.295

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	561.500	531.647	820.177
		Other Income	3.295	1.123	1.899
		TOTAL	564.795	532.770	822.076
Less	EXPENSES
		Manufacturing and Other Expenses	554.825	521.580	798.734
		TOTAL	554.825	521.580	798.734
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION		9.970	11.190	23.342
Less/ Add	DEPRECIATION/ AMORTISATION		9.769	9.883	9.778
	PROFIT BEFORE TAX		0.201	1.307	13.564
Less	TAX		(0.382)	0.366	4.993
	PROFIT AFTER TAX		0.583	0.941	8.571
Less	APPROPRIATIONS
		Proposed Dividend on Preference Shares	0.631	0.633	0.635
	BALANCE CARRIED TO THE B/S		(0.048)	0.308	7.936
	IMPORTS
		Raw Materials	1.582	0.000	0.000
		Stores & Spares	0.112	0.429	0.000
		Capital Goods	0.000	4.803	0.856
	TOTAL IMPORTS		1.694	5.232	0.856
	Earnings Per Share (Rs.)		0.40	0.28	7.21

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	0.10	0.18	1.04
Net Profit Margin (PBT/Sales)	(%)	0.04	0.25	1.65
Return on Total Assets (PBT/Total Assets}	(%)	0.10	0.73	5.55
Return on Investment (ROI) (PBT/Networth)		0.00	0.02	0.16
Debt Equity Ratio (Total Debt/Networth)		1.29	1.26	1.53
Current Ratio (Current Asset/Current Liability)		3.77	5.65	3.32

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 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	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
From Companies	2.000	12.000
From Other Parties	0.000	5.000
Total	2.000	17.000

CORPORATE INFORMATION:

Subject is a private limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is engaged in manufacturing and selling of Plastic Bags.

The financial statements of the company have been prepares in accordance with generally accepted according policies in India. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies Rules, 2006, and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis under the historical cost convention.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U17100RJ1995PTC009255
Name of the company	SUPREME POLYMERS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	133-138, Industrial Area, Jhotwara, Jaipur – 302012, Rajasthan, India Email: mukesh@spplgroup.com
This form is for	Creation of charge
Type of charge	Others [Corporate Guarantee]
Particular of charge holder	The Jammu and Kashmir Bank Limited, Panch Batti, M.I. Road, Jaipur – 302001, Rajasthan, India Email: jaipur@jkbmail.com
Nature of description of the instrument creating or modifying the charge	Guarantee Deed Dated 07.08.2012
Date of instrument Creating the charge	07.08.2012
Amount secured by the charge	Rs. 284.000 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per the agreement between star global endura limited and the bank Terms of Repayment As per the agreement between star global endura limited and the bank Margin As per the agreement between star global endura limited and the bank Extent and Operation of the charge As per the agreement between star global endura limited and the bank
Short particulars of the property charged	As per the agreement between star global endura limited and the bank

CONTINGENT LIABILITIES:

Guarantees:

Counter guarantee of Rs. 195.000 Millions against Term Loan and Working Capital Loan sanctioned by SBBJ Bank, Johari Bazar Branch Jaipur to its subsidiary Sidharath Polysacks Private Limited

Counter guarantee of Rs. 284.000 Millions against Term Loan and Working Capital Loan sanctioned by IDBI bank Limited to Star Global Endura Private Limited

Counter guarantee of Rs. 699.000 Millions against Term Loan Working Capital Loan sanctioned by the J and K Bank Limited to Alliance Polysacks Private Limited.

Other Contingent Liabilities:

Sales Tax dues of Rs. 0.944 Million against the company are in appeal or have made representation to High Court.

Excise Tax dues of Rs.35.130 Millions against the Company is in appeal or have made representation to appropriate authority.

FIXED ASSETS:

Ø Land

Ø Buildings

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Computers

Ø Electric Installation

Ø Vehicles

Ø Office 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. 54.43
UK Pound	1	Rs. 83.20
Euro	1	Rs. 71.91

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
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	3
--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
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
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.