MIRA INFORM REPORT

Report Date :

07.01.2013

IDENTIFICATION DETAILS

Name :	AQUAGUARD PLASTICS AND POLYMERS PRIVATE LIMITED
Registered Office :	A/1-839, GIDC, Makarpura, Vadodara-390010, Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	09.08.1989
Com. Reg. No.:	04-012602
Capital Investment / Paid-up Capital :	Rs. 3.574 Millions
CIN No.: [Company Identification No.]	U25209GJ1989PTC012602
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer of Drip Irrigation System, Sprinkler Irrigation System.
No. of Employees :	20 (Approximately)

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 48000
Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. It has recorded some growth in its sales during 2012 but has incurred loss from its operations. However, trade relations are reported as fair. Business is active. Payment terms are slow. 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

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. Gauri Shankar Mundhra
Designation :	Director
Contact No.:	91-9825245119
Date :	03.01.2013

LOCATIONS

Registered Office / Factory :	A/1-839, GIDC, Makarpura, Vadodara-390010, Gujarat, India
Tel. No.:	91-265-2643754 / 2648056 / 2280887 / 2280564
Mobile No.:	91-9825245119 (Mr. Gauri Shankar Mundhra)
Fax No.:	91-265-2645638
E-Mail :	gsmundhra@gmail.com
Area :	3000 Sq. Ft.
Location :	Owned

DIRECTORS

AS ON 29.09.2012

Name :	Mr. Gauri Shankar Mundhra
Designation :	Director
Address :	27, Abhishek Colony, Behind Central Excise Buildings, race Course Circle, Vadodara-390007, Gujarat, India
Date of Birth/Age :	02.01.1955
Date of Appointment :	01.10.1996
DIN No.:	00557372
Name :	Mr. Varun Mudhra
Designation :	Director
Address :	36F, Tollygunj, Circular Road, Kolkata-700053, West Bengal, India
Date of Birth/Age :	19.11.1981
Date of Appointment :	02.11.2009
DIN No.:	01394710

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
A K Mundhra	150
Vijaya Mundhra	10
Sangita Mundhra	10
Dyalchand Mundhra	4100
Varun Mundhra	2550
Rajesh K Mandal	1000
Tara Mundhra	10
C L Mundhra	20
Dayalchand Mundhra and Sons (HUF)	160
Radhadevi Mundhra	5010
Archan Mundhra	2010
Pradeep Kumar Mundhra	10
Devang Mundhra	3400
Latika Mundhra	7650
Prachi Mundhra	1230
Vandana Mundhra	400
Gaurishankar Mundhra (Micro Irrigation Projects)	3000
Dee Dee Vanijya Private Limited, India	1000
C L Mundhra (HUF)	4010
G S Mundhra (HUF)	10
TOTAL	35740

AS ON 29.09.2012

Equity Shares Break Up	Percentage of Holding
Bodies corporate	2.79
Directors or relatives of Directors	94.42
Others	2.79
TOTAL	100.00

BUSINESS DETAILS

Line of Business :	Manufacturer of Drip Irrigation System, Sprinkler Irrigation System.
Terms :
Selling :	Cash, Credit
Purchasing :	Cash, Credit

GENERAL INFORMATION

Customers :

End Users

· Climax Synthetics Private Limited

No. of Employees :

20 (Approximately)

Bankers :

· Bank of Baroda, GIDC, Makarpura Branch, Vadodara-390010, Gujarat, India

Facilities :

Bank of Baroda Total Facility Rs. 26.300 Millions
Secured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Long Term Borrowings
Term Loan From Banks	4.157	3.789
Short Term Borrowings
Cash Credit from a Bank	17.029	14.063
TOTAL	21.186	17.852
NOTE The company has not defaulted in repayment of dues to the bank.
Unsecured Loan	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
Long Term Borrowings
From Shareholders	15.943	13.788
From Bodies Corporate	9.685	8.490
TOTAL	25.628	22.278

Banking Relations :	--
Auditors :
Name :	K K Naria and Company Chartered Accountant
Address :	210, Fortune Tower, Sayajigunj, Vadodara-390005, Gujarat, India
Tel. No.:	91-265-2362737
Fax No.:	91-265-2361051
PAN No.:	ABFPN4568A
Sister Concern :	Assent Plastic Private Limited Address : A/1-839, GIDC, Makarpura, Vadodara-390010, Gujarat, India Line of Business : Manufacturer of Poly Pipe Fittings

CAPITAL STRUCTURE

AS ON 31.03.2012

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
35740	Equity Shares	Rs.100/- each	Rs. 3.574 Millions

NOTES

The Company has only one class of shares referred to as equity shares having a par value of Rs. 100/-

Details of the shareholders holding more than 5% equity shares :

Name	No. of Shares Held	% of Holding
Latika Mundhra	7650	21.40%
Radha Devi Mundhra	5010	14.02%
Dayal Chand Mundhra	4100	11.47%
Chiranji Lal Mundhra (HUF)	4010	11.22%
Devang Mundhra	3400	9.51%
Gourishankar Mundhra	3000	8.39%
Varun Mundhra	2550	7.13%
KLS Commodities Private Limited	2000	5.60%

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		3.574	3.574	3.574
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		8.589	9.996	5.861
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		12.163	13.570	9.435
LOAN FUNDS
1] Secured Loans		21.186	17.852	11.192
2] Unsecured Loans		25.628	22.278	14.557
TOTAL BORROWING		46.814	40.130	25.749
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
Revaluation Reserve		0.000	0.000	6.174
TOTAL		58.977	53.700	41.358
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15.279	14.391	17.140
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.600	0.725	0.725
DEFERREX TAX ASSETS		1.255	0.965	0.602
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	19.097	17.392	11.306
	Sundry Debtors	29.596	17.627	10.417
	Cash & Bank Balances	3.252	8.456	3.722
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	3.058	5.245	4.216
Total Current Assets		55.003	48.720	29.661
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	1.564	1.776	2.221
	Other Current Liabilities	7.697	5.779	1.830
	Provisions	3.899	3.546	2.719
Total Current Liabilities		13.160	11.101	6.770
Net Current Assets		41.843	37.619	22.891
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		58.977	53.700	41.358

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	72.083	46.831	46.521
		Other Income	0.416	1.577	NA
		TOTAL	72.499	48.408	NA
Less	EXPENSES
		Office Expenses	71.054	48.095	NA
		Administrative Expenses
		Advertising Expenses
		TOTAL	71.054	48.095	NA
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		1.445	0.313	3.146
Less/ Add	DEPRECIATION/ AMORTISATION		2.595	2.621	0.706
	PROFIT / (LOSS) BEFORE TAX		(1.150)	(2.308)	2.440
Add	Prior Period Items		0.000	0.160	0.000
Less	Long Term Capital Loss on shares		(0.123)	0.000	0.000
Less	TAX		(0.074)	(0.363)	0.453
	PROFIT / (LOSS) AFTER TAX		(1.199)	(1.785)	1.987
	Earnings Per Share (Rs.)		(33.55)	--	--

Expected Sales (2012-2013) : Rs. 90.000 Millions

The above information has been parted by Mr. Gauri Shankar Mundhra.

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	(1.65)	(3.69)	NA
Net Profit Margin (PBT/Sales)	(%)	(1.60)	(4.93)	5.24
Return on Total Assets (PBT/Total Assets}	(%)	(1.61)	(3.60)	5.15
Return on Investment (ROI) (PBT/Networth)		(0.09)	(0.17)	0.26
Debt Equity Ratio (Total Liability/Networth)		4.93	3.78	4.10
Current Ratio (Current Asset/Current Liability)		4.18	4.39	4.38

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	Yes
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	Yes
19]	Payments terms	Yes
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

FINANCIAL RESULTS

The operations in the year were good and the company earned income of Rs. 72.499 Millions compared to last year which was Rs. 48.408 Millions. However, due to provision for higher depreciation and other cost inflation, the Company incurred loss of Rs. 1.199 Millions. The directors do not recommend any dividend for the current year. The company has not accepted any deposit from the public during the year.

TRADE REFERENCES

· Climax Synthetics Private Limited

FIXED ASSETS

· Freehold Land

· Factory Building

· Office Building

· Plant and Machinery

· Office Equipments

· Computers Printers and Accessories

· Furniture and Fixtures

· Motor Vehicles

· Cycle

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. 54.84
UK Pound	1	Rs. 88.16
Euro	1	Rs. 71.54

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	DPT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	--
--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
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.