MIRA INFORM REPORT

Report Date :

02.05.2013

IDENTIFICATION DETAILS

Name :	SNF (INDIA) PRIVATE LIMITED
Formerly Known As :	POLYELECTROLYTE INDIA LIMITED
Registered Office :	Plot # 19, JNPC, Ponnuru Village, Parawada Mandal, Visakhapatnam-531021, Andhra Pradesh
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	19.09.1989
Com. Reg. No.:	01-039377
Capital Investment / Paid-up Capital :	Rs.196.515 Millions
CIN No.: [Company Identification No.]	U24134AP1989PTC039377
PAN No.: [Permanent Account No.]	AAACP4070A
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Supplier of Water Polymers.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

A (62)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 5200000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of SPCM SA, France, the holding company of SNF Floerger Group. It is a well established company having fine track record. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Plot # 19, JNPC, Ponnuru Village, Parawada Mandal, Visakhapatnam – 531021, Andhra Pradesh, India
Tel. No.:	91-891-3058888 91-8924-236050 / 51 / 52
Fax No.:	91-891-3058800 91-8924-236095
E-Mail :	kbgassociates@gmail.com info@snf-india.com
Website :	www.snf-india.com www.snf-group.com
Corporate Office :	House No. C-20, Panchavati Township, Akkireddypalem, BHPV Post, Visakhapatnam - 530012, Andhra Pradesh, India
Tel. No.:	91-891- 2533580/ 581
Fax No.:	91-891-2533582
Factory :	Plot No. 19/B, Phase - II, I.D.A, Patancheru - 502391, Medak District, Andhra Pradesh, India
Tel. No.:	91-8455-285997/ 285998
Fax No.:	91-8455-242519

DIRECTORS

As on 29.09.2012

Name :	Mr. Mulukuntla Satyanarayana Prasad
Designation :	Managing director
Address :	201, Block-C, 2nd Floor, KSR Green Valley, Marripalem Road, Madhurvada, Visakhapatnam-530018, Andhra Pradesh, India
Date of Birth/Age :	02.04.1944
Date of Appointment :	08.04.2006
PAN No.:	AHDPM6718M
DIN No.:	01097816
Name :	Mr. Gadepalli Prabhakara Sastry
Designation :	Director
Address :	#18-218, Adarsh Nagar, H.B Colony, Visakhapatnam-530022, Andhra Pradesh, India
Date of Birth/Age :	08.04.1954
Date of Appointment :	09.03.2010
PAN No.:	ADSPG3015E
DIN No.:	01393427
Name :	Pich Rene Angelo
Designation :	Director
Address :	# 6, Rue De Champirol 42270,Saint Priest Enjarez, France
Date of Birth/Age :	09.10.1940
Date of Appointment :	20.12.2000
DIN No.:	02556997
Name :	Hund Rene
Designation :	Director
Address :	# 5, Alee Do Grand Pre 2390, Uilcars, France
Date of Birth/Age :	08.11.1957
Date of Appointment :	09.04.2002
DIN No.:	02557008

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 29.09.2012

Names of Shareholders	No. of Shares
SPCM SA	19651547
SNF SAS	2
Total	19651549

Allottees as on 23.10.2012

Names of Allottees	No. of Shares
SPCM SA	1759416
Total	1759416

As on 29.09.2012

Equity Share Break up (Percentage of Total Equity)

Category	Percentage of Holding
Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Supplier of Water Polymers.

Products :

Product Description	ITC Code No.
Polyacrylic Acid	3906.90
Sodium Ployacrylyte	3906.90
Polyacrylamide	3906.90

PRODUCTION STATUS AS ON 31.03.2011

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Water Soluble Polymers	Tones	56370	41770	24441

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

The Hongkong and Shanghai Banking Corporation Limited, 30 Rajaji Salai, Chennai - 600001, Tamilnadu, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Rupee term loans from banks	113.286	37.865
Total	113.286	37.865

Banking Relations :	--
Auditors :
Name :	Sudit K Parekh and Company Chartered Accountants
Address :	2^nd Floor, Ballard House, Adi Marzban Path, Ballard Pier, Fort, Mumbai-400001, Maharashtra, India
PAN.:	AAAFS4500P
Holding company :	SNF SAS, France
Associates :	SNF (China) Flocculant Company Limited, China SNF Chemical (Thailand) Company Limited, Thailand Flomin Inc, United States Oci-Snf Company Limited, Korea SNF Floerger Philippines Inc, Philippines KF – SNF Company Limited, Taiwan, Province of China Qing Dao Aotong Chemical Company Limited, Russian Federation SNF Floerger Rsa (Pty) Limited, Palestinian Territory, Occupied

CAPITAL STRUCTURE

After 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
21410965	Equity Shares	Rs.10/- each	Rs. 214.110 Millions

As on 29.09.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
25000000	Equity Shares	Rs.10/- each	Rs.250.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
19651549	Equity Shares	Rs.10/- each	Rs. 196.515 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		196.515	159.910	133.960
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1105.865	855.620	624.316
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1302.380	1015.530	758.276
LOAN FUNDS
1] Secured Loans		113.286	37.865	0.000
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		113.286	37.865	0.000
DEFERRED TAX LIABILITIES		36.462	25.203	1.750
TOTAL		1452.128	1078.598	760.026
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		585.653	494.302	41.645
Capital work-in-progress		104.257	92.661	383.630
INVESTMENT		0.050	0.050	0.050
DEFERRED TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	431.903	334.289	176.227
	Sundry Debtors	534.103	395.171	306.664
	Cash & Bank Balances	134.997	155.232	23.214
	Other Current Assets	0.697	2.623	2.261
	Loans & Advances	202.602	108.771	101.109
Total Current Assets		1304.302	996.086	609.475
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	512.979	453.888	257.251
	Other Current Liabilities	27.762	48.515	0.000
	Provisions	1.393	2.098	17.523
Total Current Liabilities		542.134	504.501	274.774
Net Current Assets		762.168	491.585	334.701
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1452.128	1078.598	760.026

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	1873.400	1457.778	987.888
		Other Income	NA	NA	4.950
		TOTAL (A)	NA	NA	992.838
Less	EXPENSES
		Cost of goods sold			710.372
		Operating and Other expenses			142.386
		TOTAL (B)	NA	NA	852.758
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		NA	NA	140.080
Less	FINANCIAL EXPENSES (D)		NA	NA	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		NA	NA	140.080
Less/ Add	DEPRECIATION/ AMORTISATION (F)		NA	NA	6.944
	PROFIT BEFORE TAX (E-F) (G)		120.959	179.603	133.136
Less	TAX (H)		NA	NA	46.873
	PROFIT AFTER TAX (G-H) (I)		NA	NA	86.263
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	NA	200.356
	BALANCE CARRIED TO THE B/S		NA	NA	286.619
	EARNINGS IN FOREIGN CURRENCY
		FOB value of exports	100.860	129.604	85.265
	TOTAL EARNINGS		100.860	129.604	85.265
	IMPORTS
		Raw Materials	1078.602	832.084	538.162
		Trading Items	154.965	112.665	81.017
		Maintenance	0.280	0.000	0.000
		Capital Goods	43.848	16.476	62.219
	TOTAL IMPORTS		1277.695	961.225	681.398
	Earnings / (Loss) Per Share (Rs.)		NA	NA	8.76

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	NA	NA	8.69
Net Profit Margin (PBT/Sales)	(%)	6.46	12.32	13.48
Return on Total Assets (PBT/Total Assets}	(%)	6.40	12.05	20.45
Return on Investment (ROI) (PBT/Networth)		0.09	0.18	0.18
Debt Equity Ratio (Total Debt/Networth)		0.09	0.04	0.00
Current Ratio (Current Asset/Current Liability)		2.41	1.97	2.22

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	-----
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	-----
22]	Litigations that the firm / promoter involved in	-----
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	-----
26]	Buyer visit details	-----
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

NOTE

The registered office of the company has been shifted from Plot No.103, H.No.8-2-293/82/103, Road No.7D, Jubileehills, Hyderabad-500033, Andhra Pradesh, India to the present address w.e.f. 15.04.2009

PERFORMANCE

During the year , the sales volume increased by 49.94% from 21,130 MT to 31,682 MT and the sales value net of excise duty increased by 28.55% from Rs. 1457.778 millions to Rs 1873.400 millions. The profit before tax for the year is Rs. 120.959 millions as against the profit of Rs. 179.603 millions in the previous year.

FUTURE PROSPECTS

SNF (India) officially inaugurated the Vizag plant in February 2012. They have shown one more year of growth in all areas of applications. SNF India grew close to 40% in sales volume and value in 2011 as compared to 2010. The company showed continuous growth in their existing contracts with Vedanta in Mining, Cairn in EOR and several tenders in ONGC.

In addition SNF India obtained 3000 MT tender with PHPA Liquid and FS 3000 SL for an important Petroleum company in Saudi Arabia.

In Parawada, all the manufacturing of liquids like dispersants, DSR, Emulsions both anionic and cationic along with Textile products. The total production capacity of Phase 1 program in Parawada will be 35,000 MT / year.

Every Industry faced a severe loss on rupee devaluation and costed imported products expensive. This resulted in increasing their pricing to local customers, may could not accept. Also the state of Andhra Pradesh experienced severe power cuts to industries which resulted in loss on production volumes could not be supplied. Inspite of all these difficulties SNF India maintained their budgeted in terms of Sales Volume and Value in every application.

We focus more on exports in particular emulsions and dispersants for South America and Middle east along with reasonable quantities to Korea, Thailand, Bangladesh and Pakisthan. Large Contract Sales are active with Vedanta Group, Cairn and Unilever for respective markets to gain more value on the exports with strong USD.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24134AP1989PTC039377
Name of the company	SNF(INDIA) PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Plot # 19, JNPC, Ponnuru Village, Parawada Mandal, Visakhapatnam – 531021, Andhra Pradesh, India E-mail: kbgassociates@gmail.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10245263
Type of charge	Any interest in immovable property Book debts Others (Stock and Receivables)
Particular of charge holder	The Hongkong and Shanghai Banking Corporation Limited, 30 Rajaji Salai, Chennai - 600001, Tamilnadu, India E-mail: udayag@hsbc.co.in
Nature of instrument creating charge	Supplemental Hypothecation agreement for Stocks & receivables dated 26th March 2013 for INR Rs. 400.000 millions
Date of instrument Creating the charge	26.03.2013
Amount secured by the charge	Rs. 400.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest Interest shall be payable by the company on the banking facilities as per bank's tariff, subject however that the bank shall have the right to change the rate of interest after giving notice to the co. Terms of Repayment In consideration of banking facilities sanctioned/to be sanctioned by the bank to the company, the company has hypothecated and charged to the bank by way of Exclusive charge as a continuing security , the property mentioned in the schedule to Supplemental Hypothecation agreement for Stocks and Receivables to secure the repayments of the advances together with interest cost and all other charges Margin The company shall maintain such margin as may be specified by the bank from time to time. Extent and Operation of the charge In case the company fails to fulfill its obligation under the agreement, the bank shall be entitled to take possession of the hypothecated goods and sell them by public auction or private contract and utilise the proceeds in full or part settlement of its claims
Short particulars of the property or asset(s) charged (including complete address and location of the property)	An Exclusive First charge on all company's stocks and receivables for INR Rs. 400.000 millions executed vide Supplemental Hypothecation agreement for stocks and receivables dated 26^th March 13 Address: Plot No. 19, Jawaharlal Nehru Pharma City, Parawada, Visakhapatnam-531019/531021 and all other places located in India.
Date of instrument modifying the charge	30.07.2012
Particulars of the present modification	Exclusive charge on Stocks and Receivables has been enhanced from INR Rs. 250.000 millions to INR Rs. 400.000

FIXED ASSETS

• Land
• Buildings
• Plant and equipment
• Furniture and fixtures
• Vehicles
• Office equipment
• 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.54.22
UK Pound	1	Rs.84.00
Euro	1	Rs.70.98

INFORMATION DETAILS

Report Prepared by :

MRI

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	6
--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
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		62

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.