MIRA INFORM REPORT

Report Date :

18.03.2013

IDENTIFICATION DETAILS

Name :	CHEMPLAST SANMAR LIMITED
Formerly Known As :	CHEMICALS AND PLASTICS INDIA
Registered Office :	No. 9, Cathedral Road, Chennai – 600 086, Tamilnadu
Country :	India
Financials (as on) :	31.03.2009
Date of Incorporation :	13.03.1985
Com. Reg. No.:	18-11637
CIN No.: [Company Identification No.]	L24230TN1985PLC011637
TAN No.: [Tax Deduction & Collection Account No.]	CHEC00051C
PAN No.: [Permanent Account No.]	AAACC3000F
Legal Form :	Public Limited Liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer and Seller of Polyvinyl Chloride and other chemicals, fabricating PVC Pipes, Fittings & Other Extrusions & Moulding, etc.

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 15000000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. It appears that the company has incurred some losses in the year (08-09). However trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. 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.

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

LOCATIONS

Registered Office :	No. 9, Cathedral Road, Chennai – 600 086, Tamilnadu, India
Tel. No.:	91-44-28118300 / 28273333 / 28273334 / 28273335 / 28273336/ 28128500 / 28128722 / 28128723 / 28128724
Fax No.:	91-44-28111902 / 28269359 / 282777411
E-Mail :	chloro@sanmargroup.com / nsankar@sanmargroup.com csl@sanmargroup.com / pua1@sanmargroup.com
Website :	http://www.sanmargroup.com
Main Office:	Bangalore Genei 6, VI Main, BDA Industrial Suburb, Near SRS Road, Peenya, Bangalore - 560 058, India Tel : 91 80 2839 1453 / 6894 / 2837 8057 Fax : 91 80 2839 2825
Sales Office:	Chemplast Sanmar Limited Harsha Bhavan, II Floor, E Block, Connaught Place, New Delhi 110 001, India Tel : 91 11 2341 3112 / 7152 / 3614 Fax : 91 11 2341 8164 302, III Floor, Ashoka Chambers, House No 5-9-22/1/1, Adarsh Nagar, Hyderabad - 500 063, India Tel : 91 40 2323 1078 / 1079 Fax : 91 40 2329 6765 407, Swastik Chambers, Sion-Trombay Road, Chembur, Mumbai - 400 071, India Tel : 91 22 5597 3390 Fax : 91 22 5597 3395 EDC Installation, Behind SPIC Ammonia Plant, Red Gate Port Trust, Tuticorin 628 004 Tel : 91 461 2352538 Cabot Sanmar Limited Harsha Bhavan, 2nd Floor, Block ‘E’, Connaught Place, New Delhi - 110 001. Tel : 91 11 2341 3112 Fax : 91 11 2341 8164 407-412, Swastik Chambers Sion-Trombay Road, Chembur, Mumbai - 400 071. Tel: 91 22 5597 3390/ 2527 7661 Fax: 91 22 5597 3395 Bangalore Genei 57, Vellalar Street, Adambakkam, Chennai-600 088, India Tel : 91 44 22551209 Fax : 91 44 22551209 106, S.R.Complex, Opp CCMB, Hubsiguda, Hyderabad 500 007, India Tel : 91 40 27157315 Fax : 91 40 27157315 407-412, Swastik Chambers, Sion Trombay Road, Chembur Mumbai - 400 071 Tel : 91 22 55973390, 55973391 Fax : 91 22 25229646 C31, Mohammadpur, Near Bikaji Cama Place, New Delhi 110 066 Tel : 91 11 51859607 Fax : 91 11 51859608 'Chitralaya', C12, Ambanagar Vanchiyoor PO, Thiruvananthapuram 695 035, Kerala Tel : 91 471 2477703 701, Alkapuri Arcade, Tower B, 7th Floor, R.C.Dutt Road, Vadodara 390 007 Tel : 0265 2344144, 2335254 Fax : 81 265 2339748 238A, Jodhpur Park, Kolkata 700 068 Tel : 91 33 24148906 Fax : 91 33 24148906 Shop No.28, 1st Floor, Rama Dhene Singh Shopping Complex Near IT Crossing, Faizabad Road, Babu Ganj, Post Nirala Nagar Lucknow 226 020. Tel : 91 522 2788139 Fax : 91 522 2788139 J13, West High Court Road, Laxmi Nagar, Nagpur 440 022 Tel : 91 712 2236485 Fax : 91 712 2223280 406-408, 4th Floor, Century Arcade, Narangi Baug Road, Off Boat Club Road, Pune 411 001 Tel : 91 20 2612 1855 Fax : 91 20 3058 5859 Sanmar Engineering Corporation Limited M – 2 (Third Floor), South Extension Part-II, New Delhi –110 049 India Tel : 91 11 4259 7999 Fax : 91 11 4259 7910 407, Swastik Chambers, Sion-Trombay Road, Chembur, Mumbai - 400 071, India Tel : 91 22 25229639 Fax : 91 22 25229646 Chowringhee Court, IV Floor, 55, Chowringhee Road, Kolkata 700 071 Tel : 91 33 22822448 Fax : 91 33 22822190 701, Alkapuri Arcade Tower B, 7th Floor R C Dutt Road, Vadodara 390 007, India Tel : 91 265 233 2157 / 231 2302 Fax : 91 265 233 9748 406-408, 4th Floor, Century Arcade, Narangi Baug Road, Off Boat Club Road Pune 411 001 Tel : 91 20 30585859 Fax : 91 20 30585863 302, III Floor, Ashoka Chambers, House No.5-9-22/1/1 Adarsh Nagar, Hyderabad 500 063, India Tel : 91 40 23231078 / 1079 / 23242610 Fax : 91 40 23296765 3, Sangna Society, I Floor, Gurukripa Buildings, Rander Road, Surat 395 009, India Tel : 91 261 269 1947 Fax : 91 261 268 1801 Ratnaveni Complex 48-9-18/29, 1st Floor, Dwaraka Nagar I Lane, Visakhapatnam 530 016, India Tel : 91 891 2543407 Fax : 91 891 2701811 39/2453, Neeti Nikethan Warriar Road, Ernakulam, Kochi 682 016, India Tel : 91 484 2374768 Fax : 91 484 2361785 J-13, West High Court Road, Laxmi Nagar, Nagpur 440 022, India Tel : 91 712 223 6485 Fax : 91 712 222 3280
Corporate Office:	Intec Polymers 407-412, Swastik Chambers, Sion-Trombay Road, Chembur, Mumbai - 400 071, India Tel : 91 22 25229639 Fax : 91 22 25229646 Sanmar Engineering Corporation Limited 147 Karapakkam Village, Old Mahabalipuram Road, Chennai - 600 096 Tel : 91 44 24504000 Fax : 91 44 24002124 89/1, Vadugapatti Village, Viralimalai 621 316, Pudukottai District Tel : 91 4339 220252 Fax : 91 4339 220013
Regional Office :	· Harsha Bhavan, 2^nd Floor, Block ‘E’, Connaught Place, New Delhi – 110 001 Tel. 91-11-23413112 Fax. 91-11-23418164 · 407-412, Swastik Chambers, Sion-Trombay Road, Chembur, Mumbai – 400 071, Maharashtra Tel. 91-22-25973390 Fax. 91-22-25973395
Plants :	· Plant II, Raman Nagar PO, Mettur Dam – 636 403, Sales, Tamilnadu > PVC : Tel. 91-4298-231982 Fax. 91-4298-231986 > Chlorochemicals : Caustic soda, chlorine, chlorinated solvents, refrigerant gases and silicon wafers · Krishnagiri and Panruti, Tamilnadu > Industrial Alcohol · Vedaranyam, Tamilnadu > Industrial Salt PVC Plant II : Raman Nagar PO, Mettur Dam 636 403, India Tel : 91 4298 231 980 to 231 984 Fax : 91 4298 231 986 Karaikal Plant: Melavanjore Village, T.R.Pattinam Panchayat, Nagore 611 002, India Tel : 91 4365 256 475 / 476 Fax : 91 4365 256 473 Industrial Alcohol Plant II : Kadampuliyur, Panruti 607 103, India Tel : 91 4142 249101 / 249103 Fax : 91 4142 249102 Caustic Chlor Plant III : Raman Nagar PO, Mettur Dam 636 403, India Tel : 91 4298 230381 to 230385 Fax : 91 4298 230394 Karaikal Plant: Melavanjore Village, T.R.Pattinam Panchayat, Nagore 611 002, India Tel : 91 4365 256 475 / 476 Fax : 91 4365 256 473 Salt Works : Sethu Rastha, Vedaranyam 614 810, India Tel : 91 4369 250228 / 250387 Fax : 91 4369 250418 Metkem Silicon Plant IV : Raman Nagar PO, Mettur Dam 636 403, India Tel : 91 4298 230 258 / 230202 / 230218 Fax : 91 4298 230 367 Mettron Plant I : Mettur Dam RS, Salem District 636 402, India Tel : 91 4298 222 304 / 296 Fax : 91 4298 230 394 Solvents Plant III : Raman Nagar PO, Mettur Dam 636 403, India Tel : 91 4298 230381 to 230385 Fax : 91 4298 230394
Branches :	Located at :- · Bangalore, Karnataka · Kolkata, West Bengal · Mumbai, Maharashtra · New Delhi
Other Office:	Cabot Sanmar Limited Raman Nagar PO, Mettur Dam - 636 403, Salem, Tamil Nadu, India Tel: 91 04298 230382 Fax: 91 04298 230394 Sanmar Speciality Chemicals Limited No.44, Suligunta Village, Theertham Road, Berigai Post, Hosur Taluk - 635 105, Dharmapuri District. Tel: 91 04344 253 509/ 519/ 529 Fax: 91 04344 253 518. Plot Nos.: 16, 17, 31 & 32, SIDCO Pharmaceuticals Industrial Estate, Alathur Village, Chengalpattu Taluk - 603 110, Kancheepuram District. Cell: 98410-09013 Tel: 91 04114 245 228-31 Fax: 91 04114 246 439. Research Centre 38, Old Mahabalipuram Road, Perungudi, Chennai - 600 096, Tamil Nadu, India. Tel: 91 44 4225 3000 Fax: 91 44 2496 5749. Intec Polymers 130/1, Jayanthbhai Desai Marg, Village Dadra, Dadra Nagar Haveli, Silvassa - 396230 Ph: 91 260 2668784 Sanmar Engineering Corporation Limited Asco (India) Limited 147, Karapakkam Village, Chennai - 600 096. Tel: 91 44 2450 4250 Fax: 91 44 2450 2270 BS&B Safety Systems (India) Limited 147, Karapakkam Village, Chennai - 600 096. Tel: 91 44 2450 4200 Fax: 91 44 2450 1056 Fisher Sanmar Limited 147, Karapakkam Village, Chennai - 600 096. Tel: 91 44 2450 4300 Fax: 91 44 2450 1913 Flowserve Sanmar Limited 147, Karapakkam Village, Chennai - 600 096. Tel: 91 44 2450 4100 Fax: 91 44 2450 2124 Sanmar Engineering Services Limited Survey No. 38/2A, Old Mahabalipuram Road, Perungudi, Chennai - 600 096. Tel: 91 44 4225 3200 Fax: 91 44 2496 0747 Sanmar Foundries Limited 87/1, Vadugapatti Village, Viralimalai - 621 316, Pudukottai District. Tel: 91 4339 220016/ 17 Fax: 91 4339 220012 Sensortronics Sanmar Limited Survey No.38/2A, Old Mahabalipuram Road, Perungudi, Chennai - 600 096. Tel: 91 44 4225 3200 Fax: 91 44 2496 1496 Tyco Sanmar Limited 88/1B, Vadugapatti Village, Viralimalai - 621 316, Pudukottai District. Tel: 91 4339 220013/ 269/ 253 Fax: 91 4339 220370 Xomox Sanmar Limited 89/2, Vadugapatti Village, Viralimalai - 621 316, Pudukottai District. Tel: 91 4339 220252 Fax: 91 4339 220371

DIRECTORS

Name :	Mr. P. S. Jayaraman
Designation :	Managing Director
Name :	Mr. S Gopal
Designation :	Managing Director
Name :	Mr. M. K. Kumar
Designation :	Director
Name :	Mr. C. H. Mahadevan
Designation :	Director
Name :	Mr. V. K. Parthasarathy
Designation :	Director
Name :	Mr. M.S. Sekhar
Designation :	Director
Name :	Mr. V. V. Subramanian
Designation :	Director
Name :	Mr. S V Mony
Designation :	Director
Name :	Mr. B Natraj
Designation :	Director
Name :	Mr. M N Radhakrishnan
Designation :	Director
Name :	Mr. V Ramesh
Designation :	Deputy Managing Director
Name :	Mr. S Sekhar
Designation :	Director

KEY EXECUTIVES

Name :	Mr. R. Sukumaran
Designation :	Company Secretary
Name :	Mr. P U Aravind
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.03.2010

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	1,109,360	0.14
Bodies Corporate	598,563,560	74.85
Any Others (Specify)	101,380	0.01
Any Other	101,380	0.01
Sub Total	599,774,300	75.00
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	599,774,300	75.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	100,120	0.01
Financial Institutions / Banks	40,824,048	5.10
Insurance Companies	7,380,009	0.92
Foreign Institutional Investors	408,764	0.05
Sub Total	48,712,941	6.09
(2) Non-Institutions
Bodies Corporate	76,277,201	9.54
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 Million	55,862,945	6.99
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million	17,562,947	2.20
Any Others (Specify)	1,508,193	0.19
Trusts	23,900	-
Clearing Members	1,484,293	0.19
Sub Total	151,211,286	18.91
Total Public shareholding (B)	199,924,227	25.00
Total (A)+(B)	799,698,527	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Seller of Polyvinyl Chloride and other chemicals, fabricating PVC Pipes, Fittings & Other Extrusions & Moulding, etc.

Products :

Item Code No.	Product Description
390410	PVC Resins
290311	Chloromethanes
291510	Caustic Soda

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
Caustic soda	MT	113850	99173
Chlorine	MT	100740	87926
Chloromethanes	MT	34500	32452
Trichloroethylene	MT	5000	213
Polyvinyl chloride	MT	64000	61297
Refrigerant gases	MT	2500	1612
Hydrogen gas	MT	2846	2479
Silicon ingots (kgs.)	MT	1200	98
Ethyl silicate	MT	600	109
Silicon tetrachloride	MT	600	105
Pipes	MT	56000	13923

GENERAL INFORMATION

No. of Employees :	Around 2021
Bankers :	v Indian Overseas Bank, Chennai, Tamilnadu , India v State Bank of India, Chennai, Tamilnadu , India v Standard Chartered Grindlays Bank, Chennai, Tamilnadu, India v Bank of America NA, Express Tower, Nariman Point, P O Box 10080, Mumbai – 400021, Maharashtra, India v Axis Bank Limited v ICICI Bank Limited v IDBI Bank Limited
Facilities :	Secured Loan	31.03.2009 (Rs. In Millions)
	Term loans from
	Banks	10380.899
	Others	845.000
	Cash credit from banks	1019.012
	Total	12244.911
	Unsecured Loan
	Short term loans
	Others	200.000
	Total	200.000
Banking Relations :	Satisfactory
Auditors :
Name :	Price Waterhouse & Company Chartered Accountants
Address :	Chennai, Tamilnadu, India
Associates :	˜ Chemplast Speciality Chemicals Limited ˜ Bangalore Genei Limited ˜ Sanmar Shipping Limited ˜ Sanmar Properties and Investments Limited ˜ Sanmar Holdings Limited ˜ Cabot Sanmar Limited ˜ Sanmar Engineering Corporation Limited ˜ Asco (India) Limited ˜ BS and B Safety Systems (India) Limited ˜ Fisher Sanmar Limited ˜ FMC Technologie Sanmar ˜ Sanmar Engineering Serives Limited ˜ Sanmar Foundries Limited ˜ Sanmar Weighing Systems Limited ˜ Sensortronics Sanmar Limited ˜ Tyco Sanmar Limited ˜ Xomox Sanmar Limited ˜ AMP Sanmar Assurance Company Limited ˜ Atofina Peroxides India Limited ˜ Cathedral Corporate Finance ˜ Cathedral Properties (Alpha) Limited ˜ Dragoco India Limited ˜ Indchem Software Technologies Limited ˜ Kalamkriya Limited ˜ Epsilon Properties Limited ˜ Fisher-Xomox Sanmar Limited ˜ Flowserve Sanmar Limited ˜ FMC Technologies Sanmar Limited ˜ Pluto Consolidations Limited ˜ Sanmar Alloy Castings Limited ˜ Sanmar Electronics Corporation Limited ˜ Sanmar Micropack Limited ˜ Sanmar Industrial Filters Limited ˜ Sanmar Securities Trading Limited ˜ Sanmar Shipping Limited ˜ Sanmar Speciality Chemicals Limited ˜ Fortis Investments (Beta) Limited ˜ Bay View Properties Limited ˜ Sanmar Group Corporate Finance ˜ Sanmar Realty Limited ˜ Cabot Sanmar Limited ˜ SHL Property Holding Limited ˜ TCL Sanmar Chemicals LLC ˜ Sanmar Ferrotech Limited ˜ Vishay Sanmar Limited ˜ Xomax Sanmar Limited
Subsidiaries:	· Polygon Holdings Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
2000000000	Equity Shares	Rs.1/- each	Rs.2000.000millions
3500000	Preference Shares	Rs.100/- each	Rs.350.000 millions
	GRAND TOTAL		Rs.2350.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
479819440	Equity Shares	Rs.1/- each	Rs.479.819 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2009	31.03.2008	31.03.2007
SHAREHOLDERS FUNDS
1] Share Capital		479.819	479.819	479.800
2] Share Application Money		0.000	0.000	0.000
3] Advanced received toward right entitlement sanmanr holding limited		1200.000	1200.000	0.000
4] Reserves & Surplus		1385.739	2051.869	1980.100
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		3065.558	3731.688	2459.900
LOAN FUNDS
1] Secured Loans		12244.911	7752.860	4900.200
2] Unsecured Loans		200.000	721.962	0.000
TOTAL BORROWING		12444.911	8474.822	4900.200
DEFERRED TAX LIABILITIES		135.700	465.100	0.000
TOTAL		15646.169	12671.610	7360.100
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6950.894	6730.462	5201.000
Capital work-in-progress		7532.945	4890.665	2197.400
INVESTMENT		16.523	16.523	16.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1097.134	647.923	442.700
	Sundry Debtors	418.011	488.389	551.400
	Cash & Bank Balances	383.657	62.791	44.400
	Other Current Assets	117.125	244.152	0.000
	Loans & Advances	1494.418	1017.946	979.200
Total Current Assets		3510.345	2461.201	2017.700
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2380.237	1430.564	1788.300
	Provisions	34.843	46.754	327.400
Total Current Liabilities		2415.080	1477.318	2115.700
Net Current Assets		1095.265	983.883	[98.000]
MISCELLANEOUS EXPENSES		50.542	50.077	43.200
TOTAL		15646.169	12671.610	7360.100

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
Sales Turnover		6747.802	6401.787	7022.700
Other Income		641.693	776.704	77.400
Total Income		7389.495	7178.491	7100.100
Profit/(Loss) Before Tax		(990.666)	80.010	321.900
Provision for Taxation		324.700	15.200	90.000
Profit/(Loss) After Tax		(665.966)	64.810	231.900
Earnings in Foreign Currency :
	Export Earnings	287.909	219.754
	Income from Certificated Emission Reduction	462.143	502.283
Total Earnings		750.052	722.037	184.198
Imports :
	Raw Materials	1686.821	964.662	NA
	Stores & Spares	38.413	61.332	NA
	Capital Goods	408.243	230.871	NA
	Others	0.000	0.000	NA
Total Imports		2133.477	1256.865	NA
Expenditures :
	Cost of goods sold	5619.356	4833.047
	Salaries, wages and amenities to staff	583.720	558.992
	Repair and maintenance	358.692	294.234
	Other expenses	523.881	523.706
	Interest and finance charges	754.908	436.528
	Depreciation / Amortization	539.604	451.974
Total Expenditure		8380.161	7098.481	6778.200
Earnings Per Share (Rs.)		(1.39)	0.15	NA

SUMMARIES RESULTS

PARTICULARS	31.03.2010
Sales Turnover	9850.100
Other Income	0.000
Total Income	9850.100
Total Expenditure	9182.800
Interest	1246.900
PBDT	(1101.100)
Depreciation	763.700
Tax	(583.200)

KEY RATIOS

PARTICULARS		31.03.2009	31.03.2008	31.03.2007
PAT / Total Income	(%)	(9.01)	0.90	3.27
Net Profit Margin (PBT/Sales)	(%)	(14.68)	1.25	4.58
Return on Total Assets (PBT/Total Assets}	(%)	(9.47)	0.87	4.46
Return on Investment (ROI) (PBT/Networth)		(0.32)	0.02	0.13
Debt Equity Ratio (Total Liability/Networth)		0.79	0.40	0.86
Current Ratio (Current Asset/Current Liability)		1.45	1.66	0.95

LOCAL AGENCY FURTHER INFORMATION

HISTORY

The Company was formerly known as Chemicals and Plastics India (CPIL)), incorporated in 1962 was promoted as Urethanes India by Chemplast, the flagship of the Sanmar group, Tamilnadu. It became a fully-owned subsidiary of Chemplast in 1991 when the name was changed to the present one. 

The company set up a 2500 tpa thermoplastic polyurethane plant in Tamilnadu in technical collaboration with BF Goodrich Company, US. It manufactures caustic soda, chlorine, chlorinated solvents, PVC, refrigerant gases and industrial alcohol.  

In 1991-92, the capacity of PVC was enhanced to 48,000 tpa, making it the third largest manufacturer of PVC resin in the country. The company formed Peroxides India in collaboration with Atochem, US, for a wide variety of polymerisation initiators; and Drechem Speciality Chemicals, in technical collaboration with Dragoco, Germany, to manufacture aromatic chemicals.  

The PVC capacity is being enhanced from 48,000 tpa to 60,000 tpa and that of chloromethanes is being enhanced to 25,000 tpa. In 1995-96, Metkem Silicon, a subsidiary of the company manufacturing poly and mono crystalline silicon was merged with the holding company. During the same period, the thermoplastics polyuerthane division of the company was spun-off into a joint venture with Bayer, Germany. It also has entered into a joint venture with Cabot Corporation, US, for the manufacture of fumed silica as a springboard. 

The company is in advanced stage of discussing raw material tie-ups for its proposed shore-based PVC project. As a measure of conservation of power, the company is replacing shell and tube acid cooler and condensers with plate heat exchangers in the Chlor-alkali process. 

The company has taken on hand a backward integration captive project for setting up an oxychlorination with the capital outlay of over Rs 600 Millions. This will help the company to improve captive feedstock (EDC) capacity, leading to lower dependence on imported feedstock. 

During 2000-01, the company brought on stream an oxychlorination plant which would increase captive production of EDC and reduce dependence on imports and also significantly reduce the environmental impact of its operations. 

Subject to necessary approvals the company planned to amalgamate Sanmar Properties and Investments Limited (SPIL) excluding its Investment and Shipping business w.e.f. Nov 2, 2003. SPIL's Investment and Shipping division would be demerged to Sanmar Holdings Limited effective from Nov 1, 2003. SPIL sharehodlers get one equity share of Chemplast sanmar for every share in SPIL.

Operations  

The company is going through one of the most difficult times in its history. The operations of the company for the year 2008-09 resulted in a substantial loss of Rs.990.700 millions, contributed by factors arising out of the global economic crisis and the violent fluctuations in petroleum and petro-chemical prices. This was compounded by the non-accrual of anticipated revenues from the large projects the company has set up, due to delays in their commissioning- These are discussed in more detail in this report.

The sharp increase in crude oil and petro-chemical prices in the first half of the year, was followed by their sudden collapse concurrent with the onset of the. Global financial crisis in August-September 2008. The price of

a barrel of crude oil dropped from a peak of around USD 145 on 1st July 08 to USD 70 on October, and subsequently to as low as USD 40 on 10th January 09. This resulted in a corresponding meltdown of prices of petro-chemical intermediates and finished products. The stocks of raw material and intermediates that the company was holding at prices linked to the earlier prevailing peak prices of crude oil, accounted for a substantial portion of the losses incurred during the year.

While the economic situation continues to be grim, the expertise that company's management has developed over forty years in handling highly' cyclical commodity businesses, and the focus on full fledged integrated operations, are helping the company face these challenges.

In view of the losses incurred, the Directors do not recommend payment of dividend on equity shares for the year 2008-09.

MANAGEMENT DISCUSSIONS AND ANALYSIS:

The year under reference witnessed the company recording significant losses in business and that too, for the first time in almost 40 years of operation. As explained above, the global financial meltdown took a particularly heavy toll on commodity businesses, and the company was no exception. The management is continuing to focus on integration and capacity growth to ward off the effects of rough ride in the economy. With this end in view, the company has'nearly completed two major projects - one to cut cost in power generation and the other - to add significant capacity in PVC business .through a greenfield expansion. These projects are waiting for the final nod of the iWgulator to commence operation.

PVC Business:

The company's integrated facility at Mettur Dam with a present capacity to produce 64,000 tonnes per annum (TPA) of PVC resins has recorded 42 years of continuous operation. The company is the only domestic manufacturer with a product range of four different grades of PVC resin, providing ability to optimise product mix and maximise contribution. The feedstock, Ethylene Dichloride (EDC) required for the manufacture of PVC, is also produced captively.

Suspension Resin:

Suspension resin demand in India for the yea. is estimated at, 1.375 millions tonnes, clocking a modest growth of 0.8% over the previous year. Of this, around 102 millions tonnes were met out of domestic production with the balance coming from imports. The slowdown in construction sector had a negative impact-on consumption. With several projects planned by various State Governments in the agriculture and irrigation sectors, it is expected that the demand would rebound and register good growth in the current year.

Paste Resin:

Consumption in India during the year 2008-09 is estimated at 62,000 tonnes, registering a growth of 60%, over the previous year. Low priced import of finished leather cloth continues to affect this segment. In addition, the slowdown in automobile and retail home segment also led to suppressed demand. The company's paste resin continues to enjoy a preference with most buyers.

Battery Separator Resin (BSR):

BSR market in the country continues to stagnate at 5,000 TPA. Prices came under pressure during the year on the back of cheap imports. Your company decided to cut back on BSR production to maintain its premium prices in the market.

Copolymer Resin:

In view of very small volume involved, the company decided to suspend this business.

PVC Pipes (Trubore Piping System):

The demand for PVC Pipes remained healthy in the early part of the year on the back of investments in irrigation and water schemes. The rising PVC prices and general economic slowdown resulted in suppressed demand for Pipes as the year progressed. However, as agricultural sector has been performing well, combined with Government's focus on micro irrigation schemes, the demand for pipes in irrigation segment contributed to a smart recovery towards the end of the year.

The company's PVC Pipes manufactured at Trubore Piping Division have been approved by all southern State Governments for their water supply schemes as well as by the Government of West Bengal. The company's Pipes are the first to be approved by the State Government agencies in Andhra Pradesh for sewer application.
 

During the year, production in the PVC pipes plant at Ponneri in Tamil Nadu got affected due to 40% power cut announced by the Tamil Nadu Electricity Board. In line with production requirements, the labour strength was right sized. Following this, the contract labour proceeded on an illegal strike in February 2009, supported by the workmen and a section of supervisors. Pursuant to this, production has been stopped completely and discussions are under way to bring about a solution.

 
The new greenfield PVC pipes plant in Shinoli, Maharashtra (near Belgaum) with a capacity of 20,000 TPA went on stream in December 2008. This project had been delayed by about 4 months due to delay in getting, power connection in Maharashtra. The company is attending to various teething troubles in the new plant and it is expected that production will stabilise shortly. The, plant has been certified by Bureau of Indian Standards (BIS) for ISI marking for Pressure, Casing and SWR Pipes.
 
During 2008-09, new dealers have been,appointed(in all the southern states. 
The sales volume achieved during the year was 13,662 tonnes, an increase of 
12% over last year.,
 
Risksnd concerns:
 
(a) The thin spread of just 3% between import duty on PVC (5%) and the intermediate EDC (2%) affects the contribution of the PVC business.
 
(b) Fall in sugar crop production resulted in reduced availability of molasses and alcohol. This, coupled with double-digit growth in consumption in potable sector, is putting severe pressure on margins' on alcohol based 
EDC. This is an area of concern for your company.
 
(c) The high levels of fuel cost that prevailed during most part of the year has deeply impacted margins of the company.
 
Review of Operations:

The PVC production during the year 2008-09 was 61,297 MT, an increase of 17% over previous year's production. The company's Marine Terminal Facility at Karaikal along with a facility to manufacture captive raw material, Ethylene Dichloride REDO, was principally responsible for this smart improvement in production.

In line with international trends, domestic Suspension- PVC prices improved dramatically in the early part of the year on the back of strong economic growth all across the globe. However, in the later half of the year, global

slowdown started affecting demand and, both international and domestic suspension prices started to decline. Prices did recover to%ards the end of the year, thanks to the strong demand in irrigation sector in India and

increase in raw material prices in the international market. ,

 
Chlorochemicals Business:  
 

The compam operates a highly integrated Chlorochemical business in Mettur JDam producing Caustic Soda, Chloromethane Products, Silicon Wafers 'and Refrigerant Gas (HCFC). Power and salt required for caustic soda manufacture is available from captive source. Chlorine produced in the Chlor Alkali plant is completely consumed for captive production of EDC and Chloromethane products.

 
Caustic Chlor : 
 

During the year, Indian Caustic Soda industry witnessed an addition of over 0.400 million tonnes of capacity. Mirroring the price trend in PVC resin, the year witnessed strong rise in prices during the first half of the year on the back of improved demand from most consuming sectors; the later half, of the year saw prices continuously decline as the demand was impacted by the global economic slowdown. Caustic Soda prices have maintained its south-ward journey in the current year and registered, steep drop.

While the company has adequate captive capacity for meeting its salt requirement, unseasonal rains during several months along with cyclone Nisha that hit Tamil Nadu coast in November 2008, impacted salt production

adversely and forced the company into buying salt from Gujarat, a costlier option. This affected the company's operation during the year to the tune of almost Rs.170.000 millions.

Solvents:

With the major demand for Chloromethane products being from the pharma sector, and with this sector not being adversely impacted by the global economic slowdown, demand for Chloromethane products witnessed a 5% growth against a normal growth of around 6%. However, low priced imported Chloromethane products towards the later half of the year resulted in steep fall in prices.

 
The fall in end product prices in Chloromethanes was mitigated to some extent by the fall in methanol prices as the year progressed. 
 

The company ceased production of Trich.loroethylene and Ethyl Silicate as margins were turning out to be unviable. This afforded an opportunity for the company to divert chlorine for better value addition in manufacture of EDC.

 
In line with the Montreal Protocol, the company regulated the production of CTC for non-feedstock applications and towards this the company received a compensation of Rs.37.900 millions during the year.
 
Mettron:
 

CFC production was scheduled for phase out by December 2009 in line with the schedule mandated by Montreal Protocol. India agreed for an accelerated phase out of CFCs by 31st July 2008. The company also therefore discontinued the production of CFCs by this date.

 
The company received a compensation of Rs.12.300 millions in line with compensation agreed for phase out as per original schedule.
 

HCFC production was at 1612. MT. The company also earns Certified Emission Reduction (Carbon Credits) from its Clean Development Mechanism project.

 
Metkem:
 
The company restarted manufacture of polysilicon after updating its manufacturing facility during the year. This would insulate the company from the vagaries of polysilicon availability in the international market.
 
Risks and concerns:
 

(a) As Chlor Alkali operations are energy intensive, high levels of fuel prices impact the company's margin sharply. The company's tie up with a Gas based power-generating entity for 22 MW of power at lower rates has limited this impact to some extent. In addition, a project to convert fuel from LSHS to imported coal for generating 48.5 MW of power at Mettur Dam is in an advanced stage of implementation.

 
(b) Sale volume of CTC will shrink as the deadline 2010 set for phase out under the Montreal Protocol nears.
 
(c) Unseasonal rainfall affects your company's salt production.
 
PROJECTS:
 
Fuel Conversion Project at Mettur Dam:
 

To circumvent the impact of increasing liquid fuel prices resulting in high cost of power generation, the company has taken on-hand a project to convert 48.5 MW LSHS. based cogeneration facility to coal-based cogeneration of the same capacity. The project is in its final stage of completion. On completion, the project would contribute significantly to reduce the power and steam cost as compared to LSHS.

In May 2006, Tamil Nadu Pollution Control Board (TNPCB),had given the necessary approval to the Company for the above conversion of fuel from LSHS to coal based co-generation facility of 48.5 MW. However, in January 2008, TNPCB'4assed orders revoking the consent given by them earlier alleging contravention of conditions imposed while granting the consent. The company's appeal against the order of TNPCB was dismissed by the Appellate Authority -Tamil Nadu Pollution Control in May 2008. Against this order of the Appellate authority, the company filed a writ petition in the Honourable Madras High Court. In September 2008, the Honourable Madras High Court had allowed the writ petition of the company and set aside the, orders of the TNPCB and the Appellate authority. The High Court has remitted the matter back to TNPCB to pass appropriate orders on merits and the same is pending.

 
Greenfield PVC Project at Cuddalore:
 

The company has canpleted setting up of the state of art greenfieid PVC plant at Cuddaiore including a captive Marine Terminal Facility (MTF) to enable import of Vinyl Chloride Monomer (VCM), the feedstock required to manufacture PVC. The issues encountered in laying the pipeline to carry VCM from the MTF to the plant were resolved pursuant to the directions contained in the Government order issued in October 2008 by the Government of Tamil Nadu on the basis of the findings of high level committee appointed by the Government. This, of course, resulted in a delay of around six months in completion of the project. The company could obtain the 'Consent to Operate' order for the MTF from the TNPCB and the issue of 'Consent to Operate' order for the PVC plant is under consideration by the said authority. The manufacturing operations would commence immediately after receipt of the said consent The company has also tied up with a couple of manufacturers for supply of VCM.for its operations.

The delay in commissioning of the above two projects involving an investment of around Rs.8000.000 milllions has put enormous financial burden on the company. The fact that the company could not commission these projects in time despite receiving all initial approvals and consents is agonising.

 
Environment:
 

The Zero Liquid Discharge (ZLD) facility set up at a cost of Rs.260.000 millions at Mettur Dam is functioning satisfactorily. Similar facility has been installed at the Greenfield PVC project at Cuddalore. Besides, the PVC plant at Cuddalore will operate by desalinating the sea water and no ground water will be used at the location.

 
The company has taken further concrete steps in the direction of sustainability. 
 

Moving up on the sustainability agenda, the company's second CSR report 'Back to the Roots' was released in 2009. This report carries the assurance certification from Deloitte and Touche Tohmatsu India Private Limited. Deloitte's assurance is based on International Standards on Assurance Engagement (ISAE). The report was checked by Global Reporting Initiative rGRI) for application level A+ of the GRI's G3 guidelines. GRI is the collaborative arm of the United Nations' Environment Program (UNEP), a not-for-profit organisation based in Arnsterdam and it provides a complete almanac of performance indicators for companies to report, using the triple-bottom line approach of economic, environmental and societal parameters. The purpose.of the report, apart from benchmarking the company's sustainability practices to globally recommended levels, also helped the company to set a roadmap for continuous improvement in environment and sustainability standards. In the coming years, the company would put in practice processes and systems for sustainability reporting across all its facilities.

Yet another milestone achieved by the company was the CII-ITC Sustainability Award 2008. The company received a Commendation Certificate for Significant .Achievement in Sustainability Practices in the large business category. This award is the recognition of the company's sustainability practices, placing it among the top few in the country.

Fixed Assets

v Land – Freehold

v Building

v Plant and Machinery

v Furniture and Equipments

v Vehicles

Intangible Assets

v Software

Audited Financial Results for the year ended March 31, 2010

Rs. In Millions

Particular	Quarter Ended		Year Ended
	31.03.2010	31.03.2009	31.03.2010	31.03.2009
Net Sales/ Income form operation	3611.478	1429.495	9335.385	5747.802
Other Operating Income	82.403	87.754	513.258	641.693
Total Income	3693.882	1517.230	9350.093	7383.495
Expenditure
Increase / Decrease in stock	(857.490)	62.233	(1142.800)	(62.952)
Consumption of raw material / purchase	3709.450	999.688	8538.812	5632.303
Employees cost	192.392	169.550	671.403	533.720
Depreciation	238.502	163.896	763.735	539.604
Other expenditure	342.153	193..477	1115.422	832.373
Total expenditure	3623.427	1573.684	9946.564	7625.263
Profit from depreciation before interest and exceptional items	70.455	(56.434)	(96.471)	(235.758)
Interest	363.655	239.241	1246.929	764.908
Profit/ Loss after interest but before exceptional items	(293.200)	(294.475)	(1343.399)	(960.665)
Exceptional items	312.517	--	521.411	--
Profit / Loss from ordinary activities before tax	(605.717)	(254.475)	(1864.810)	(990.666)
Tax expenses	(153.369)	(93.236)	(583.169)	(324.535)
Net profit / Loss for the period	(452.648)	(201.239)	(1281.641)	(666.133)
Paid up equity share capital (face value of equity shares of Rs. 10/- each)	793.598	439.818	799.699	479.319
Reserves excluding revaluation reserves	--	--	1366.591	1335.738
Earning per shares (in Rs) Basic/ Diluted	(0.57)	(0.42)	(1.60)	(1.39)
Public shareholding
Number of Shares	199924227	119954860	199924227	119954860
% of Shareholding	25.00	25.00	25.00	25.00
Promoters and Promoter Group Shareholding
a) Pledged/Encumbered
- Number of Shares	-	-	-	-
- Percentage of Shares (as a % of the Total Shareholding of	-	-	-	-
- Percentage of Shares (as a % of the Total Share Capital of the Company)	-	-	-	-
b) Non Encumbered
- Number of Shares	599774300	359854583	599774300	359854580
- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)	100.00	100.00	100.00	100.00
- Percentage of Shares (as a % of the Total Share Capital of the Company)	75.00	75.00	75.00	75.00

AS PER WEB DETAILS

The Sanmar Group, with its corporate headquarters at Chennai, the capital city of Tamil Nadu state in south India, has set the benchmark for global partnerships—in chlorochemicals, Speciality chemicals, and engineering.

These businesses are grouped and managed in industry segment FINANCE: 

The company has established a good track record with the bankers and financial institutions, thereby enjoying their confidence fully. The increase in interest cost in recent period is a matter of concern, however with good standing of the company with the lenders, the company is confident of securing loans at optimum costs. 

With a view to enhance liquidity of company's shares on the stock exchanges and facilitate easier accessibility to the company's equity shares by small investors, during the year, the company carried out a stock split by sub-dividing each equity share of Rs.10 of the company into 10 equity shares of Re. each. 

as follows:

· PVC/ Chlorochemicals

· Speciality Chemicals

· Shipping

· Engineering

In addition to significant or majority holdings in all these businesses, the group has also made major investments in life insurance and cement manufacture.

Professionally managed

In the course of its well planned professionalisation initiatives over the years, the group has successfully separated ownership and management by establishing a broad-based, empowered Group Corporate Board comprising eminent persons from varied backgrounds. The GCB oversees all Sanmar businesses, but is involved only on a strategic level, with the management of the businesses fully delegated to professional managing directors and run by over 600 highly qualified managers.

Group Strengths

The Sanmar Group has over three decades of experience in running and managing a large industrial organisation with multiple businesses. It is renowned for its exceptional management skills covering diverse and complex businesses, strong and conservative financial practices, and its ability to source, assimilate and apply complex technologies in different fields.

Some of the group’s major strengths are: Its leading edge HR practices and reputation as a preferred employer; its high level of IT integration, with SAP ERP in place in all the businesses; and its successful relations with the government, based on professional merit and integrity.

A history of consistent profit making

The group entered into its first international joint venture back in the 1960s when it started Chemicals and Plastics India Limited to manufacture PVC resins in joint venture with B F Goodrich of the USA.

Today, it has a turnover of around Rs.10 billion and a presence in some 25 businesses, with 25 manufacturing units spread over 10 locations in India.

Characterised by strong and conservative financial practices, it has a track record of steady growth and consistent profitmaking over the last three decades, enjoying an excellent reputation in the financial markets. The group is known for its high ethical standards and healthy respect for intellectual property rights.

At the company, the flagship company of the Sanmar Group, integration - forward and backward - is the key.

The company has two main businesses – PVC and Chlorochemicals. The basic feedstock for its PVC plant, ethylene and chlorine, come from its industrial alcohol plant at Panruti and its own chloralkali facilities.

The Chlorochemicals Division of Chemplast, itself the result of backward integration by the group, manufactures a wide range of products using a highly integrated manufacturing process. These downstream products are either chlorine derivatives or chlorine users in the production process. The feedstock for the refrigerant gases is supplied by the solvents division.

The salt needed for chlorine manufacture is supplied by Chemplast's own salt fields at Vedaranyam. The process being capital intensive, Chemplast is fully equipped to generate sufficient captive power to meet its entire requirements, thus making it one of the most integrated chemical plants in the country with a closed manufacturing loop.

Between the two main businesses, Chemplast's product range falls into five distinct groups — PVC Resins, Caustic Soda/ Chlorine, Chlorinated Solvents, Refrigerant Gases and Silicon Wafers.

The manufacturing facilities are located at Mettur in Tamil Nadu and Karaikal in Pondichery.

The Sanmar Group, with its corporate headquarters at Chennai, the capital city of Tamil Nadu state in south India, has set the benchmark for global partnerships in niche technology areas.

The group has significant or majority holdings in all its businesses.

These businesses are grouped and managed in industry segments as follows:

· PVC/ Chlorochemical

· Speciality Chemical

· Shipping

· Engineering

In addition, the group has also made major investments in cement manufacture.

Professionally managed

Sanmar’s businesses are professionally managed, thanks to the group’s ability to attract, motivate and retain high calibre staff. Ownership and management have been separated through a series of top level initiatives, including the formation of a broadbased, empowered Group Corporate Board, which oversees all businesses, including strategies and policies. The businesses are managed by professional managing directors, with highly qualified managers working under them.

Group Strengths

The Sanmar Group has over three decades of experience in running and managing a large industrial organisation with multiple businesses.

The group’s innate strengths include:

· An ability to source, assimilate and apply complex technologies in different fields.

· Leading edge HR practices and a reputation as a preferred employer

· A high level of IT integration with an SAP ERP platform across businesses

· A global outlook highlighted by successful JVs with world leaders, and a high level of cross border trade

Blazing a trail

The group entered into its first international joint venture back in the 1960s when it started Chemicals and Plastics India Limited to manufacture PVC resins in joint venture with B F Goodrich of the USA.

Today, it has a turnover of over Rs.13 billion and a presence in some 25 businesses, with manufacturing units spread over numerous locations in India.

Characterised by strong and conservative financial practices, it has a track record of steady growth and consistent profitmaking over the last three decades, enjoying an excellent reputation in the financial markets. The group is known for its high ethical standards and healthy respect for intellectual property rights.

Where integration is the key

At the company, the flagship company of the Sanmar Group, integration - forward and backward - is the key.

The company has two main businesses – PVC and Chlorochemicals. The synthesis that underlies the polymer chemistry of PVC manufacture is also reflective of the company’s approach to business. The basic feedstock for its PVC plant, ethylene and chlorine, come from its industrial alcohol plant at Panruti and its own chloralkali facilities at Mettur and Karaikal.

The Chlorochemicals Division of Chemplast, itself the result of backward integration by the group, manufactures a wide range of products using a highly integrated manufacturing process. These downstream products are either chlorine derivatives or chlorine users in the production process.

The salt needed for chlorine manufacture is supplied by Chemplast’s own salt fields at Vedaranyam.

The electrolysis process of manufacturing chlorine, is power-intensive, but Chemplast is fully equipped to generate sufficient captive power to meet its entire requirements.

All this makes subject one of the most integrated chemical plants in the country with a closed manufacturing loop.

Between the two main businesses, the companies product range falls into five distinct groups — PVC Resins, Caustic Soda/ Chlorine, Chlorinated Solvents, Refrigerant Gases and Silicon Wafers.

The manufacturing facilities are located at Mettur and Panruti in Tamil Nadu and Karaikal in Pondichery.

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 records 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.54.16
UK Pound	1	Rs.81.74
Euro	1	Rs.70.50

INFORMATION DETAILS

Report Prepared by :

RAJ

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	3
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--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	YES
--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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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.