MIRA INFORM REPORT

 

 

Report Date :

15.03.2013

 

IDENTIFICATION DETAILS

 

Name :

POLYNOVA INDUSTRIES LIMITED (w.e.f. 1988)

 

 

Formerly Known As :

LUPIN POLYMERS LIMITED

 

 

Registered Office :

159, CST Road, Kalina, Santacruz (East), Mumbai – 400 098, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

20.10.1986

 

 

Com. Reg. No.:

11-041294

 

 

Capital Investment / Paid-up Capital :

Rs.184.800 millions

 

 

CIN No.:

[Company Identification No.]

U25209MH1986PLC041294

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMP16865C

 

 

PAN No.:

[Permanent Account No.]

AAACP3071F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Exporter of Artificial Leather and made ups [Coated Textile Fabric with PVC, Cellular Sheets (Unsupported), Other Sheets of PVC].

 

 

No. of Employees :

100 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (34)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 845000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having a moderate track record. The company has performed well and wipe out its accumulated loss.

 

The financial position of the company seems to be improving. Trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct.

 

In view of experience promoters, the company can be considered for business dealings with slight caution.

 

Note:

Banker denied to disclose any detail of the subject to us.

 

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

 

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

ICRA

Rating

Long Term Fund Based: BBB

Rating Explanation

Having moderate degree of safety regarding timely servicing of financial obligation it carry moderate credit risk.

Date

October, 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.

 

INFORMATION PARTED BY

 

Name :

Mr. Anand

Designation :

Accounts Department

Contact No.:

91-22-26528048

Date :

14.03.2013

 

 

LOCATIONS

 

Registered Office/ Head Office :

159, CST Road, Kalina, Santacruz (East), Mumbai – 400 098, Maharashtra, India

Tel. No.:

91-22-26528048/ 26526297/ 26528035/ 26526151/ 26526927/ 26523981/ 26540915

Fax No.:

91-22-26526758

E-Mail :

polynova@lupinpharma.com

Website :

http://www.polynovaindia.com

Location :

Owned

 

 

Factory :

92-101, Kundaim Industrial Estate, Off. Panji Ponda Road, Kundaim Ilhas, Goa - 403 115, India

Tel. No.:

91-832-2395223/ 2395224

Fax No.:

91-832-2395222

E-Mail :

polynova@sancharnet.in

 

 

DIRECTORS

 

As on 28.09.2012

 

Name :

Mr. Sunil Makharia

Designation :

Director

Address :

C-106, Karan, Off Yari Road, Versova, Andheri (West), Mumbai – 400 061, Maharashtra, India

Date of Birth/Age :

17.08.1962

Qualification :

B.Com

Date of Appointment :

31.08.2001

DIN No.:

00064399

 

 

Name :

Dr. Deshbhandu Gupta

Designation :

Director

Address :

48-49, Hatkesh Co-Operative Housing Society, JVPD Scheme, Juhu, Mumbai – 400 049, Maharashtra, India

Date of Birth/Age :

08.02.1938

Qualification :

M.Sc.

Date of Appointment :

29.04.2005

DIN No.:

00209378

PAN No.:

AABPG2863L

 

 

Name :

Mrs. Manju Deshbhandu Gupta

Designation :

Director

Address :

48-49, Hatkesh Co-Operative Housing Society, JVPD Scheme, Juhu, Mumbai – 400 049, Maharashtra, India

Date of Birth/Age :

22.09.1943

Qualification :

B.A.

Date of Appointment :

29.04.2005

DIN No.:

00209461

 

 

Name :

Mr. Kushiram Gupta

Designation :

Director

Address :

Flat No.1301, 13th Floor, Beachwood Towers Co-Operative Housing Society, Yari Road, Versova, Mumbai – 400 061, Maharashtra, India 

Date of Birth/Age :

06.07.1955

Qualification :

M.Com.

Date of Appointment :

31.12.1999

DIN No.:

00389736

 

 

KEY EXECUTIVES

 

Name :

Mr. Anand

Designation :

Accounts Department

 

 

Name :

Mr. Pradeep Sanganeria

Designation :

Secretary

Address :

12B, Willow Co-Operative Society, Eden Woods, Thane – 400 601, Maharashtra, India 

Date of Birth/Age :

29.03.1964

Date of Appointment :

27.06.1994

PAN No.:

AMWPS3127J

 

 

Name :

Mr. Padmanabhan Nemmara Sankaranarayanan

Designation :

Director

Address :

A9, Saloka Co-operative Housing Society, Nanasankarseth Road, Dombivli (West), Thane – 421 202, Maharashtra, India

Date of Birth/Age :

17.05.1959

Date of Appointment :

01.04.2009

PAN No.:

AAKPP9311P

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 28.09.2012

 

Names of Shareholders

 

No. of Shares

Deshbhandu Gupta

100

Manju Deshbhandu Gupta

100

Arunkumar Guruprasad Gupta

1

Kamal Kishore Sharma

1

Kushi Ram Gupta

1

Rahas Investments Private Limited, India

4620000

Visiomed (India) Private Limited, India

4620000

Lupin Marketing Private Limited, India

4620000

Zyma Laboratories Private Limited, India

4619795

Sunil Makharia

2

Total

18480000

 

As on 28.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Artificial Leather and made ups [Coated Textile Fabric with PVC, Cellular Sheets (Unsupported), Other Sheets of PVC].

 

 

Products :

Product Description

ITC Code No.

 

Coated Textile Fabric with PVC

59031090

Cellular Sheets (Unsupported)

39211900

Other Sheets of PVC

39263090

 

 

Exports :

 

Products :

Finished Goods

Countries :
  • France
  • Germany
  • UK
  • USA

 

 

Terms :

 

Selling :

Cash and Credit (30/ 60 days)

 

 

Purchasing :

Cash and Credit (30 days) 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Artificial Leather

L. Mtrs in ‘000’s per annum

N.A.

10000

8341*

 

* Production includes 168 Thousands L. Mtrs in a Leased Factory

 

GENERAL INFORMATION

 

Customers :

Manufacturers

 

 

No. of Employees :

100 (Approximately)

 

 

Bankers :
  • State Bank of India, Commercial Branch, N.G.N. Vaidya Marg, Fort, Mumbai – 400 023, Maharashtra, India
  • State Bank of India, Mid Corp. Regional Office, Mumbai Samachar Marg, Opposite Horniman Circle, Gate No.5, 2nd Floor, Fort, Mumbai – 400 001, Maharashtra, India (Tel. No.: 91-22-22661301/ 22662205)

 

 

Facilities :

Secured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

SHORT TERM BORROWINGS

 

 

Loans repayable on demand from banks

(Secured by way of first hypothecation charge on inventories, trade receivable, other loans and advances and collateral first charge on the entire fixed assets of the company)

92.444

81.395

Total

92.444

81.395

 

 

 

Banking Relations :

--

 

 

Financial Institution :

The Industrial Credit and Investment Corporation of India Limited, 163, Backbay Reclamation, Mumbai – 400 020, Maharashtra, India

 

 

Auditors :

 

Name :

Deolitte Haskins and Sells

Chartered Accountants 

Address :

12, Dr. Annie Besant Road, Bapnu Ghar, Opposite Shiv Sagar Estate, Worli, Mumbai – 400 098, Maharashtra, India

PAN No.:

AADFD2337G

 

 

Entities in which the Key Management Personnel have control or significant influence :
  • Lupin Limited, India (CIN No.: L24100MH1983PLC029442)
  • Synchem Chemicals (India) Private Limited, India (CIN No.: U24110MH1991PTC063012)
  • Novamed Pharmaceuticals Private Limited, India (CIN No.: U24232MP1988PTC007551)
  • Lupin Marketing Private Limited, India (CIN No.: U51900MH1988PTC046185)
  • Rahas Investments Private Limited, India (CIN No.: U65990MH1991PTC060087)
  • Visiomed (India Private Limited, India (CIN No.: U33202MH1989PTC052278)
  • Zyma Laboratories Limited, India (CIN No.: U24230MH1970PLC014881)
  • D. B. Gupta (HUF)

 

 

CAPITAL STRUCTURE

 

As on 28.09.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

20000000

Equity Shares

Rs.10/- each

Rs.200.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

18480000

Equity Shares

Rs.10/- each

Rs.184.800 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

184.800

184.800

184.800

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

26.346

0.000

2.500

4] (Accumulated Losses)

0.000

(26.019)

(63.679)

NETWORTH

211.146

158.781

123.621

LOAN FUNDS

 

 

 

1] Secured Loans

92.444

81.395

58.451

2] Unsecured Loans

90.300

93.300

93.300

TOTAL BORROWING

182.744

174.695

151.751

DEFERRED TAX LIABILITIES

6.002

6.835

7.873

 

 

 

 

TOTAL

399.892

340.311

283.245

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

80.267

77.008

71.874

Capital work-in-progress

15.535

7.137

0.862

 

 

 

 

INVESTMENT

0.001

0.001

0.001

DEFERRED TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
147.741

143.700
106.641

 

Sundry Debtors
312.091

224.651
203.373

 

Cash & Bank Balances
7.158

6.332
7.026

 

Other Current Assets
0.084

0.012
0.010

 

Loans & Advances
45.376

63.435
23.907

Total Current Assets
512.450

438.130

340.957

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
189.930

165.095
120.658

 

Other Current Liabilities
9.217

9.886
7.551

 

Provisions
9.214

6.984
2.240

Total Current Liabilities
208.361

181.965

130.449

Net Current Assets
304.089

256.165
210.508

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

399.892

340.311

283.245

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from operations

1545.265

1044.994

836.144

 

 

Other Income

2.697

8.102

2.710

 

 

TOTAL                                     (A)

1547.962

1053.096

838.854

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of materials consumed

1163.948

782.140

734.726

 

 

Purchases of stock-in-trade

0.051

0.981

 

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

14.053

(11.457)

 

 

 

Employee benefit expense

74.137

57.040

 

 

 

Other expenses

177.067

141.148

 

 

 

TOTAL                                     (B)

1429.256

969.852

734.726

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

118.706

83.244

104.128

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

28.208

22.618

17.685

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

90.498

60.626

86.443

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

10.166

9.141

8.392

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

80.332

51.485

78.051

 

 

 

 

 

Less

TAX                                                                  (H)

27.967

16.325

25.516

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

52.365

35.160

52.535

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(28.519)

(63.679)

(116.214)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

NA

(28.519)

(63.679)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Exports of goods on FOB basis

394.759

322.092

283.016

 

TOTAL EARNINGS

394.759

322.092

283.016

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

228.774

196.699

149.802

 

 

Capital Items

1.789

0.428

0.031

 

 

F G Trading Import

0.000

0.000

0.962

 

TOTAL IMPORTS

230.563

197.127

150.795

 

 

 

 

 

 

Earnings Per Share (Rs.)

2.83

1.90

2.84

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
3.38

3.34
6.26

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
5.20

4.93
9.33

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
13.55

9.99
18.91

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.38

0.32
0.63

 

 
 

 
 

Debt Equity Ratio

(Total Debt/Networth)

 
0.87

1.10
1.23

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
2.46

2.41
2.61

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

31.03.2010

(Rs. in millions)

Sundry Creditors

189.930

165.095
120.658

 

 

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

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

Yes

33) Voter ID No of Proprietor/Partner/Director, if available

No

34) External Agency Rating, if available

Yes

 

 


Unsecured Loans

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

LONG TERM BORROWINGS

 

 

Loans and advances from related parties

(There are no fixed repayment terms, the

rate of interest is 10 percentage)

90.300

93.300

Total

90.300

93.300

 

OVERVIEW:

 

The Company was incorporated in 1986 as Lupin Polymers Limited subsequently in 1988 the name was changed to Polynova Industries Limited. The Company primarily manufactures Artificial Leather, made ups, which are mainly used in Automobiles, Shoes, General Upholstery and Bags etc.

 

OPERATIONS

 

The Company recorded a top line as well as a bottom line growth of 49% over the previous year. This has been a solid performance by the company despite the adverse economic conditions and continued recession in the advanced markets of Europe and USA.

 

The raw material situation remained grim throughout the year and the authorities continued to levy antidumping duty on PVC Resin. Other raw materials also continued to be at peak levels. The efforts to increase production at the leased facility at Pardi Gujarat and better product mix resulted in improved profitability.

 

The company maintained its leadership position in the OEM and Export segment.

 

The company was restrained to explore new markets and customers due to capacity constraints. Hence, the company continues to focus on value added products and niche products contributing better margins. Cost control measures at all levels to keep costs under check by developing alternate raw materials and sources continued.

 

New Initiative

 

In view of full capacity utilization the company has embarked on a major expansion drive.

 

a) A 4 station Italian ISO Tex Coating line has been finalized and would be installed at Goa.

 

b) They are also negotiating to lease a German coating line in Gujarat.

 

Both the above facilities would create an additional capacity of 7 million meters. The above capacity would be ready for operation only by the year 2013-14.

 

EXPORTS:

 

The company has achieved Export Turnover of Rs.403.228 millions on CIF basis.

 

The Company achieved a growth of 21% over the previous year despite continued slowdown in the US and Europe markets.

 

OUTLOOK

 

The prices of PVC Paste grade resin have started easing a bit; however the plasticizer and Fabrics prices are on the rise. There is already a move from the plasticizer manufacturers to get an antidumping duty imposed on the plasticizers imports. The company along with the manufacturers association is taking up the matter with the appellate authorities.

 

In order to mitigate the impact of the raw materials the company has developed niche products in the footwear segment and the same has been well accepted by the customers.

 

The prices of Furnace Oil, a major source of fuel for the energy requirements, increased by 40% in the current year. This has been a major cost center on which the company had no control. In order to control and bring down the cost of energy, the company has initiated a shift in the fuel system to Bio fuels. This is expected to reduce the energy costs by half. The benefit of this shift will be felt in the last quarter of the current year.

 

The Zimmer coating machine has commenced production. This will result in newer products and increase production capacity.

 

The company is continuing its effort to bring in new products, develop alternative cheaper raw material etc to keep the cost of raw materials in check and also ensure better product mix. Company is continuing to consolidate its entry in the footwear segment with better quality and cost efficient products.

 

The company is expected to show substantially better performance in the year 2012-13

 

CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR):

 

Particulars

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

a) Bills of exchange discounted with Banks not matured

72.409

66.311

b) Disputed claim for Provident Fund dues

0.790

0.790

c) Stamp duty in respect of Import clearance

0.512

0.512

d) Disputed Central Excise claims

0.469

0.469

e) Disputed Income Tax claims

1.419

0.304

Total

75.599

68.386

 

 

Bankers Charges Report as per Registry

 

Corporate identity number of the company

U25209MH1986PLC041294

Name of the company

POLYNOVA INDUSTRIES LIMITED

Address of the registered office or of the principal place of  business in India of the company

159, CST Road, Kalina, Santacruz (East), Mumbai – 400 098, Maharashtra, India  

E-Mail: polynova@lupinpharma.com

This form is for

Modification of charge

Charge identification number of the modified 

80019406

Type of charge

Book Debts

Movable Property (not being pledge)

Particular of charge holder

State Bank of India, Mid Corp. Regional Office, Mumbai Samachar Marg, Opposite Horniman Circle, Gate No.5, 2nd Floor, Fort, Mumbai – 400 001, Maharashtra, India

E-Mail: savitha.raghavan@sbi.co.in

Nature of description of the instrument creating or modifying the charge

1.    Eighth Supplemental Agreement of Hypothecation of Goods and Assets for increase in the Overall Limit

       (Form C.2-A)

2.    Eighth Supplemental Agreement of Loan for increase in the overall Limit (Form C-1-A)

3.    Letter regarding the grant of Individual Limits within the overall Limit (Form C.5)

4.    Omnibus Counter Guarantee

(All the above documents constitute a single Modification.)

Date of instrument Creating the charge

14.01.2013

Amount secured by the charge

Rs.409.000 millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest:

For CC/WCDL - 3.50% above Base Rate (at present Base Rate is 9.75%) (i.e. Effective Rate - 13.25%)

Term Loan - 2.75% above Base Rate (i.e. Effective Rate - 12.50%

 

Terms of Repayment:

Working Capital Limits are subject to review from time to time and are repayable on Demand.

 

Term Loans are repayable in Installments

 

Margin:

Raw Materials - Domestic : 15% and Imported : 20%

Stock in process - 35%

Finished Goods - Domestic Sales : 35% and Exports : 10%

Stores and Spares - 35%

Receivables (Cover period 120 days) - 40%

Export Receivables - 20%

Term Loan - 28%

 

Extent and Operation of the charge:

The charge is to operate as a security for the due repayment total Credit Limit of Rs.409.000 millions availed or to be availed by the Company from time to time, together with interests, costs, charges, commissions, expenses, fees, penalty and all other sums / dues payable by the Company to the Bank in terms of enhancement of the said limits.

 

Others:

CC / WCDL - Rs.160.000 millions

EPC / PSC - (Rs.120.000 millions)

Term Loan - Rs.90.000 millions

Letter of Credit - Rs.135.000 millions

Bank Guarantee - Rs.15.000 millions

Forward Contract - Rs.9.000 millions

                       -----------------

                Total – 409.000 millions

All other terms and conditions are as per the sanction letter and loan documents executed by the Company with the Bank from time to time.

Short particulars of the property charged

Whole of the Current Assets of the Borrower namely, stocks of raw materials, stock in process, semi finished and finished goods, stores and spares not relating to plant and machinery (Consumables stores and spares), bills receivables and book debts and all other movables, both present and future, whether now lying loose or in cases or which or now lying or stored in or about or shall hereinafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about of the Borrower's factories premises and godowns or wherever else or be held by any party to the order or disposition of the Borrower or in the course of transit or on high seas or on order or delivery, howsoever and wheresoever in the possession of the Borrower and either by way of substitution or addition and the present machinery listed in the schedule hereunto and all future machinery belonging to or in the possession or under the control of the Borrower wherever lying, stored and kept and whether in the possession of the Borrower or of the Bank or of any third party whether in India or elsewhere throughout the world (including all such goods, other movable assets as may be in course of shipment, transit or delivery).

Date of latest modification prior to the present modification

26.03.2012

Particulars of the present modification 

By this Modification Total Credit Limits granted by Bank are enhanced to Rs.409.000 millions consisting of :

CC / WCDL - Rs.160.000 millions

EPC / PSC - (Rs.120.000 millions)

Term Loan - Rs.90.000 millions

Letter of Credit - Rs.135.000 millions

Bank Guarantee - Rs.15.000 millions

Forward Contract - Rs.9.000 millions

Against the continuation of Hypothecation of whole of the Current Assets of the Borrower and all present and future Machinery

 

FIXED ASSETS:

 

·         Land

·         Buildings

·         Office Building

·         Plant and Equipment

·         Factory Equipments

·         Furniture and Fixtures

·         Vehicles

·         Office Equipments

·         Computer Equipments

·         Other Equipments

·         Computer Software

 

 

 

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.54.44

UK Pound

1

Rs.81.33

Euro

1

Rs.70.50 

 

 

INFORMATION DETAILS

 

Information Gathered by :

PLK

 

 

Report Prepared by :

SMN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

4

--CREDIT LINES

1~10

4

--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

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

34

 

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.