MIRA INFORM REPORT

Report Date :

25.11.2013

IDENTIFICATION DETAILS

Name :	SDR POLYMERS PRIVATE LIMITED
Registered Office :	145/4A, Ettayapuram Road, Tuticorin – 628002, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	24.05.2010
Com. Reg. No.:	18-075796
Capital Investment / Paid-up Capital :	Rs. 6.431 Millions
CIN No.: [Company Identification No.]	U25200TN2010PTC075796
TAN No.: [Tax Deduction & Collection Account No.]	MRIS05883D
PAN No.: [Permanent Account No.]	AAOCS3736L
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturing small and Jumbo (FIBC) poly woven bags.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (28)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 73000
Status :	Moderate
Payment Behaviour :	Slow and Delayed
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. Management has failed to file the financials of 2013, with the government department. As per available financials, the profit margin of the company appears to be low. External borrowings seems to be huge and increasing over previous year’s during 2012. The ratings also take into consideration the instances of delay by subject in servicing its debts. However, trade relations are fair. Business is active. Payments terms are slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
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

The current downturn provides an opportunity to push ahead with reforms to accelerate growth, says the latest India Development Update report released by the World Bank. The report says that the adverse effects of rupee depreciation are likely to be offset by the gains in the exports performance due to improved external competitiveness. Since May this year, the local currency has depreciated substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.

A stagflation like situation appears to have arisen as inflation jumped to an eight month high of 6.46 % for the month of September. It is up from 6.10 % in August. Growth continues to be muted with factory output plunging to 0.6  % in August. Onion prices have risen nearly 300 % from last September. Vegetables cost nearly 90 % more than they did last year. Wake up to the economic contribution of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic product, according to a recent study conducted in 50 top cities.

136000 estimated number of jobs created during the second quarter of the current financial year. 50000 estimated number of additional jobs in the field of corporate social responsibility in the coming years.

The International Finance Corporation expects to come out with its rupee linked bonds issue before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched in India from 1^st November.

The Land Acquisition Act to provide just and fair compensation to farmers will come into force from January 1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The Securities and Exchange Board of India has approved the trading of currency futures on the Bombay Stock Exchange. The exchange plans to launch the currency futures platform with advanced trading technology by the end of November.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long term rating: D
Rating Explanation	Default or are expected to be in default.
Date	28.12.2012

Rating Agency Name	CRISIL
Rating	Short term rating: D
Rating Explanation	Default or are expected to be in maturity.
Date	28.12.2012

RBI DEFAULTERS’ LIST STATUS

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

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

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

LOCATIONS

Registered Office :	145/4A, Ettayapuram Road, Tuticorin – 628002, Tamilnadu, India
Tel. No.:	91-461-2320322
Fax No.:	91-461-2324596
E-Mail :	johnohilvi@yahoo.co.in accounts@sdrpolymers.in info@sdrpolymers.in
Website :	www.sdrpolymers.in
Factory :	7/55/1, Kamaraj Nagar West, Servaikaranmadam, Sawyerpuram, District Tuticorin – 628251, Tamilnadu, India
Tel. No.:	91-461-2264300
Fax No.:	91-461-2264301

DIRECTORS

As on 28.09.2013

Name :

Mr. Samvelnadar Dharmaraj Vijayaseelan

Designation :

Chairman cum Managing director

Address :

67/B, Sivanthakulam Road, Thoothukudi Town, District Thoothukudi - 628003, Tamilnadu, India

Date of Birth/Age :

25.06.1972

Date of Appointment :

24.05.2010

DIN No.:

03017599

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U25200TN2010PTC075796	SDR POLYMERS PRIVATE LIMITED	Managing director	24/05/2010	24/05/2010	-	Active	NO
2	U63010TN2010PTC078084	SDR LOGISTICS PRIVATE LIMITED	Managing director	15/11/2010	15/11/2010	-	Active	NO
3	U74900TN2012PTC087092	SDR ENERGY PRIVATE LIMITED	Director	06/08/2012	06/08/2012	-	Active	NO
4	U74999TN2012PTC087530	VRA ENERGY PRIVATE LIMITED	Director	05/09/2012	05/09/2012	-	Active	NO

Name :

Mr. Vijayaseelan Reena Seelan

Designation :

Director

Address :

67/B, Sivanthakulam Road, Thoothukudi Town, District Thoothukudi - 628003, Tamilnadu, India

Date of Birth/Age :

22.11.1978

Date of Appointment :

24.05.2010

DIN No.:

03011456

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U25200TN2010PTC075796	SDR POLYMERS PRIVATE LIMITED	Director	24/05/2010	24/05/2010	-	Active	NO
2	U63010TN2010PTC078084	SDR LOGISTICS PRIVATE LIMITED	Director	15/11/2010	15/11/2010	-	Active	NO
3	U74900TN2012PTC087092	SDR ENERGY PRIVATE LIMITED	Director	06/08/2012	06/08/2012	-	Active	NO
4	U74999TN2012PTC087530	VRA ENERGY PRIVATE LIMITED	Director	05/09/2012	05/09/2012	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 28.09.2013

Names of Shareholders	No. of Shares
Samvelnadar Dharmaraj Vijayaseelan	40092
Vijayaseelan Reena Seelan	24220
Total	64312

Equity Share Break up (Percentage of Total Equity)

As on 28.09.2013

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing small and Jumbo (FIBC) poly woven bags.

Products :

ITC Code	Product Descriptions
39232990	Small and Jumbo (FIBC) poly woven bags.

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity	Actual Production
Woven Poly Bags	Qty.(MT)	N.A.	1000	509.61

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Tamilnad Mercantile Bank Limited, Sipcot Branch, 97/H/30, Palayamkottai Road, Tuticorin – 628002, Tamilnadu, India

Facilities :

Secured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long-term Borrowings
Secured Term Loans From banks	33.849	33.843
Short-term borrowings
Secured Loans repayable on demand from banks
Cash Credit Facility	25.551	22.420
Bill discounting facility	1.680	0.000
Total	61.080	56.263
Note: Term Loans from banks are secured by way of : - Equitable mortgage of leasehold lands of the company at Tuticorin and the buildings constructed thereat. -Hypothecation of plant and machineries, inventories and book debts of the company and -Personal guarantees of the directors of the company. There are no continuing default in repayment of term loan from banks

Banking Relations :
Auditors :
Name :	J. Selvin Gnanaraj Chartered Accountant
Address :	4/219-4, Sundar Nagar, I Street, Muthiahpuram P.O., Tuticorin – 628005, Tamilnadu, India
Income-tax PAN of auditor or auditor's firm :	AQMPS4501Q

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
100,000	Equity Shares	Rs. 100/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
64,312	Equity Shares	Rs. 100/- each	Rs. 6.431 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	6.431	6.431
(b) Reserves & Surplus	10.221	10.061
(c) Money received against share warrants	0.000	0.000
(2) Share Application money pending allotment	1.500	0.000
Total Shareholders’ Funds (1) + (2)	18.152	16.492
(3) Non-Current Liabilities
(a) long-term borrowings	49.199	48.307
(b) Deferred tax liabilities (Net)	0.178	0.252
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	0.000	0.000
Total Non-current Liabilities (3)	49.377	48.559
(4) Current Liabilities
(a) Short term borrowings	27.232	22.420
(b) Trade payables	12.692	3.576
(c) Other current liabilities	12.819	14.308
(d) Short-term provisions	0.000	0.152
Total Current Liabilities (4)	52.743	40.456
TOTAL	120.272	105.507
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	63.247	55.771
(ii) Intangible Assets	0.000	0.000
(iii) Capital work-in-progress	4.954	8.998
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	0.000	0.000
(c) Deferred tax assets (net)	0.000	0.000
(d) Long-term Loan and Advances	1.363	0.981
(e) Other Non-current assets	0.593	3.822
Total Non-Current Assets	70.157	69.572
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	28.422	12.158
(c) Trade receivables	11.190	15.568
(d) Cash and cash equivalents	0.881	0.948
(e) Short-term loans and advances	9.622	7.262
(f) Other current assets	0.000	0.000
Total Current Assets	50.115	35.936
TOTAL	120.272	105.508

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011
	SALES
		Income	94.956	61.933
		Other Income	0.013	0.000
		TOTAL (A)	94.969	61.933
Less	EXPENSES
		Cost of materials consumed	70.274	48.952
		Changes in inventories of finished goods, work in- progress and stock-in-trade	(17.636)	(7.117)
		Employee benefits expense	7.457	4.958
		Other Expenses	14.376	10.495
		TOTAL (B)	74.471	57.288
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		20.498	4.645
Less	FINANCIAL EXPENSES (D)		11.540	2.206
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		8.958	2.439
Less/ Add	DEPRECIATION/ AMORTISATION (F)		8.847	1.623
	PROFIT BEFORE TAX (E-F) (G)		0.111	0.816
Less	TAX (H)		(0.048)	0.251
	PROFIT AFTER TAX (G-H) (I)		0.159	0.565
	EARNINGS IN FOREIGN CURRENCY
	FOB Value of Exports		22.051	0.000
	IMPORTS
	Raw material		3.408	0.000
	Earnings Per Share (Rs.)		2.48	8.78

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011
PAT / Total Income	(%)	0.17	0.91
Net Profit Margin (PBT/Sales)	(%)	0.12	1.32
Return on Total Assets (PBT/Total Assets}	(%)	0.10	0.85
Return on Investment (ROI) (PBT/Networth)		0.01	0.05
Debt Equity Ratio (Total Debt /Networth)		4.21	4.29
Current Ratio (Current Asset/Current Liability)		0.95	0.89

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 two years	Yes
12]	Profitability for last two 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	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

OPERATIONS:

In the year under report, the Company posted gross revenue of Rs. Millions and net profit of Rs. Millions. In small bag segment, the Company achieved sales volume of 20,90,550 bags (previous year 32,26,685 bags). In Jumbo Bags (FIBC Bags) segment, the Company achieved sales volume of 210832 bags (previous year 91,799 bags). In September 2011 the company shipped its maiden export and the export volume has increased gradually since then. Performance of the company has been satisfactory.

EXPANSION PROJECT:

The expansion project undertaken by the company during 2010-11 was completed during the year under report except a work shed meant for finishing work. However transformer installed during 2011-12 has been put to use during the current financial year.

CURRENT YEAR OUTLOOK:

Barring unforeseen circumstances, the Company expects to perform well during the current year

UNSECURED LOAN

Unsecured Loan	31.03.2012 (Rs. in Millions)	31.03.2011 (Rs. in Millions)
Long-term Borrowings
Unsecured Term Loans from Other Parties	0.314	0.000
Loans and advances from related parties – Directors (Unsecured and repayable after repayment of above term loans raised from banks.)	15.037	14.464
Total	15.351	14.464

INDEX OF CHARGES

S.NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10451329	05/09/2013	1,000,000.00	TAMILNAD MERCANTILE BANK LIMITED	THOOTHUKUDI SIPCOT BRANCH, D.NO.97/H-30, PALAYAMK OTTAI ROAD, THOOTHUKUDI, TAMIL NADU - 628008, INDI A	B85855229
2	10451330	04/09/2013	2,500,000.00	TAMILNAD MERCANTILE BANK LIMITED	THOOTHUKUDI SIPCOT BRANCH, D.NO.97/H-30, PALAYAMK OTTAI ROAD, THOOTHUKUDI, TAMIL NADU - 628008, INDI A	B85855591
3	10265709	22/01/2011	39,640,000.00	TAMILNAD MERCANTILE BANK LIMITED	SIPCOT BRANCH, 97/H/30 , PALAYAMKOTTAI ROAD, TUTI CORIN, TAMIL NADU - 628008, INDIA	B06008189
4	10265707	07/11/2012 *	38,500,000.00	TAMILNAD MERCANTILE BANK LIMITED	SIPCOT BRANCH, 97/H/30, PALAYAMKOTTAI ROAD, TUTICORIN, TAMIL NADU - 628002, INDIA	B71310726
5	10265708	04/09/2013 *	42,500,000.00	TAMILNAD MERCANTILE BANK LIMITED	THOOTHUKUDI SIPCOT BRANCH, D.NO.97/H-30, PALAYAMK OTTAI ROAD, THOOTHUKUDI, TAMIL NADU - 628008, INDI A	B85855914
6	10265711	21/01/2011	7,500,000.00	TAMILNAD MERCANTILE BANK LIMITED	SIPCOT BRANCH, 97/H/30 , PALAYAMKOTTAI ROAD, TUTI CORIN, TAMIL NADU - 628008, INDIA	B06008478
7	10265712	21/01/2011	8,380,000.00	TAMILNAD MERCANTILE BANK LIMITED	SIPCOT BRANCH, 97/H/30, PALAYAMKOTTAI ROAD, TUTI CORIN, TAMIL NADU - 628008, INDIA	B06008668

Note: * Date of charge modification

FIXED ASSETS

· Factory Building

· Plant and Machinery

· Electrical Installations

· Tools and Equipment’s

· Office Equipment’s

· Data Processing Machines

· Vehicles - Four Wheelers

· Furniture and Fittings

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.63.02
UK Pound	1	Rs.102.04
Euro	1	Rs.84.92

INFORMATION DETAILS

Report Prepared by :

KVT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		28

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.