MIRA INFORM REPORT

Report Date :

03.02.2014

IDENTIFICATION DETAILS

Name :	HPL ADDITIVES LIMITED (w.e.f. 16.11.2007)
Formerly Known As :	HIGH POLYMER LABS LIMITED
Registered Office :	803, Vishal Bhawan, 95, Nehru Place, New Delhi – 110 019
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	24.08.1976
Com. Reg. No.:	55-008309
Capital Investment / Paid-up Capital :	Rs.115.600 millions
CIN No.: [Company Identification No.]	U25209DL1976PLC008309
TAN No.: [Tax Deduction & Collection Account No.]	DELH0073D
PAN No.: [Permanent Account No.]	AAACH0110P
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is primarily engaged in manufacture of chemicals including blowing agents, antioxidants, azo-initiators and speciality chemicals.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (50)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 5664000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having a satisfactory track record. There appears some dip in the turnover and profitability of the company during current year. However, networth of the company appears to be satisfactory. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The 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 – December 1, 2013

Country Name	Previous Rating (30.09.2013)	Current Rating (01.12.2013)
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 services sector, the largest contributor to India’s GDP, contracted for the sixth consecutive month in December, as orders dipped. However, hiring has risen.  Direct tax collections rose 12.3 % during the April – December period of the current financial year.  The government has decided to retain 100 per cent foreign direct investment in both greenfield (new) and brown field (existing) pharmaceutical companies, despite concerns over genetic drugs going out of production, if multi-national companies take over domestic ones. In M&A deals, a non compete clause would not be allowed, except in special circumstances. The Department of Industrial Policy and Promotion plans to release the next edition of its consolidated foreign direct investment policy document on March 31, incorporating changes made in the past year. DIPP compiles all policies related to India’s FDI regime into a single document to make it easy for investors to understand. 185 million estimated number of mobile internet users in India by June 2014, according to a report by the Internet & Mobile Association of India and IMRB International.  India had 110 million mobile internet users with 25 million in rural areas. $3.77 tn estimated global IT spending in 2014, according to research firm Gartner Inc. The growth forecast for this year is cut to 3.1 %from the earlier estimate of 3.5 %. The spending growth forecast for telecom services – a segment that accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per cent is the main reason for this overall IT cut. A Reserve Bank of India committee has recommended setting up a special category of lenders who would cater to small businesses and households, to expand the number of customers with access to banking services. These banks would focus onproviding payment services and deposit products.  Indian banks want the free use of automated teller machines to be capped at five transactions in a month including that of the bank in which the account is active. This follows state government order to banks to install security guards at ATM booths after a woman banker was assaulted in Bangalore. The government is likely to present a vote on Account in mid-February. The annual Economic Survey will be tabled later in Parliament along with the full Budget. A full Budget for 2014/15 is likely to be present in July by the new government formed after the General Election. The government will soon launch an internet spy system, called Netra, to detect malafide messages. Security agency will deploy the system to capture dubious voice traffic on applications such as Skype and Google Talk, as well as tweeters.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating: A-
Rating Explanation	Adequate degree of safety it carry low credit risk.
Date	October 15, 2013

Rating Agency Name	CRISIL
Rating	Short Term Rating: A2+
Rating Explanation	Strong degree of safety it carry very low credit risk.
Date	October 15, 2013

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 :	803, Vishal Bhawan, 95, Nehru Place, New Delhi – 110 019, India
Tel. No.:	91-11-26421757/ 26431379/ 1522/ 26421570/ 1
Fax No.:	91-11-26474350/ 26460981
E-Mail :	hpla@hpladditives.com pb-cosec@hpl-group.com dc-cosec@hpl-group.com iilc@vsnl.com
Website :	http://www.hpladditives.com
Corporate Office/ Corporate Headquarter :	5^th Floor, Block A, Vatika Mindscapes, 12/3, Main Mathura Road, Faridabad – 121 003. Haryana, India
Tel. No.:	91-129-2251300 (30 Lines)
Fax No.:	91-129-2251304/ 05
Manufacturing Site 1 :	Plot No.6-8, Sector-25, Ballabgarh, Faridabad – 121 004, Haryana, India
Manufacturing Site 2 :	Village Dudhaula, Prithla-Dhatir Road, Palwal – 121 102, Haryana, India
Manufacturing Site 3 :	Derabassi - Barwala Road, Village Bhagwanpur, Derabassi, District S.A.S. Nagar, Mohali – 140 507, Punjab, India
Manufacturing Site 4 :	Plot No.72, Sector-25, Ballabgarh, Faridabad – 121 004, Haryana, India
International Offices :	Located at: · USA · China

DIRECTORS

AS ON 30.09.2013

Name :

Mr. Harcharan Singh

Designation :

Managing Director

Address :

174-A, Sainik Farms, Khanpur, New Delhi – 110 062, India

Date of Birth/Age :

22.07.1937

Qualification :

Post-Graduation in Science from Punjab University

Date of Appointment :

07.10.2010

DIN No.:

00183848

PAN No.:

AAAPS8285K

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	U74899DL1983PTC015518	CLEAR CHEM PRIVATE LIMITED	Director	07/04/1983	07/04/1983	-	Active	NO
2	U25209DL1976PLC008309	HPL ADDITIVES LIMITED	Managing director	07/10/2010	01/06/2004	-	Active	NO
3	U74899DL1994PLC059434	HPL INVESTMENTS LIMITED	Director	09/12/2006	09/12/2006	-	Active	NO
4	U74899DL1994PTC059301	HPL SECURITIES PRIVATE LIMITED	Director	09/12/2006	09/12/2006	-	Active	NO
5	U24100DL2009PTC189161	HPL INNOVATION PRIVATE LIMITED	Director	06/04/2009	06/04/2009	-	Active	NO

Name :

Mr. Umesh Anand

Designation :

Managing Director

Address :

K-210, Lane W-12, Western Avenue, Sainik Farm, New Delhi – 110 062, India

Date of Birth/Age :

16.10.1962

Qualification :

MBA

Date of Appointment :

07.10.2010

DIN No.:

00122526

PAN No.:

AAKPA4253F

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	U25209DL1976PLC008309	HPL ADDITIVES LIMITED	Managing director	07/10/2010	01/06/2002	-	Active	NO
2	U24100DL2009PTC189161	HPL INNOVATION PRIVATE LIMITED	Director	06/04/2009	06/04/2009	-	Active	NO
3	U51909DL2012PTC229809	ANDY HOME PRIVATE LIMITED	Director	11/01/2012	11/01/2012	-	Active	NO

Name :

Mr. Satpal Singh

Designation :

Whole Time Director

Address :

House No.439, Sector-14, Faridabad – 121 007, Haryana, India

Date of Birth/Age :

08.08.1944

Date of Appointment :

16.02.2009

DIN No.:

00286831

PAN No.:

AAKPS1816L

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	U25209DL1976PLC008309	HPL ADDITIVES LIMITED	Whole-time director	16/02/2009	01/01/2004	-	Active	NO
2	U74899DL1994PLC059434	HPL INVESTMENTS LIMITED	Director	16/09/2004	16/09/2004	-	Active	NO

Name :

Dr. Dilip Digambar Ravetkar

Designation :

Director

Address :

I-202, Nav Pinnac, Kanchanganga, Aundh, Pune – 411 007, Maharashtra, India

Date of Birth/Age :

29.07.1953

Date of Appointment :

13.10.2005

DIN No.:

00048446

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	U25209DL1976PLC008309	HPL ADDITIVES LIMITED	Director	13/10/2005	13/10/2005	-	Active	NO
2	U29297PN1986PLC041406	MOJJ ENGINEERING SYSTEMS LIMITED	Whole-time director	12/12/2008	24/08/2008	01/11/2012	Active	NO

Name :

Prof. (Dr.) Veena Choudhary

Designation :

Director

Address :

House No.22, Taxila Apartment, IIT Campus, Hauz Khas, New Delhi – 110 016, India

Date of Birth/Age :

05.01.1951

Date of Appointment :

13.10.2005

DIN No.:

01058328

Name :

Mr. Badri Nath

Designation :

Director

Address :

C-434, Defence Colony, New Delhi – 110 024, India

Date of Birth/Age :

03.12.1938

Date of Appointment :

30.09.2013

DIN No.:

03082664

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	U72900DL2005PTC190485	JARTBB HUMAN RESOURCES AND SOFTWARE (PUNE) PRIVATE LIMITED	Alternate director	03/05/2010	03/05/2010	-	Strike off	NO
2	U32109DL1995PTC211887	ROLASTAR PRIVATE LIMITED	Alternate director	19/06/2010	19/06/2010	-	Active	NO
3	U45200DL2007PTC161012	RUSKIN TITUS INDIA PRIVATE LIMITED	Director	07/09/2012	07/09/2012	-	Active	NO
4	U74900DL2012FTC246099	NEXTER SYSTEMS INDIA PRIVATE LIMITED	Alternate director	14/03/2013	14/03/2013	-	Active	NO
5	U25209DL1976PLC008309	HPL ADDITIVES LIMITED	Director	30/09/2013	21/03/2013	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2013

Names of Shareholders	No. of Shares	Percentage of Holding
Harcharan Singh	2479928	21.46
Manjinder Pal Kaur	2440925	21.12
HPL Mercantile Private Limited, India	2367926	20.49
HPL Securities Private Limited, India	1278949	11.07
Umesh Anand	1045404	9.05
Maninder Kaur	341546	2.96
Minal Anand	328581	2.84
Satpal Singh	306815	2.65
Clear Chem Private Limited, India	297505	2.57
Amar Deep Singh	259300	2.24
Anupreet Singh	173792	1.50
Arpana Singh	75880	0.66
Simran Singh	61573	0.53
Ritu Singh	59345	0.51
Mohinder Kaur	21533	0.19
Baldev Singh	7425	0.06
Jai Karan Anand	5500	0.05
Narender Kaur	5500	0.05
Fatepuria Brothers, India	3	0.00
Total	11557430	100.00

AS ON 30.09.2013

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	34.00
Directors or relatives of directors	66.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is primarily engaged in manufacture of chemicals including blowing agents, antioxidants, azo-initiators and speciality chemicals.

Products :

Product Description	ITC Code No.
Speciality and water treatment chemicals	38123090
HH 100% and Trizole	28251020
Azo-initiator	38159000
PVC Stabilizer Kicker and Blowing Agents and Other speciality chemicals	29042090
Antioxidants and UV stabilizer	38123090
Blowing agents	29241900
Denatured salt (by product)	38259000

PRODUCTION STATUS (AS ON 31.03.2011):

(Quantity in metric tons)

Particulars	Licensed Capacity	Installed Capacity (#)	Actual Production
Blowing agent	NA	10000	*7149.05
Speciality and water treatment chemicals	NA	800	209.21
Azo-initiator	NA	400	**252.97
Antioxidants and UV stabilizer	NA	10000	******3335.22
Hexamine	NA	900	*****-
PVC stabilizer kicker, blowing agents and other speciality chemicals	NA	2500	****853.18
HH 100% and Tizole	NA	1750	***1385.03
Others^	NA	--	--

Notes:

^ No individual item exceeds 10% of the total production

# As certified by the management and relied upon by the auditors, being a technical matter.

Being chemical plant, production capacities are interchangeable across the products

The Company’s products are exempt from licensing requirements under New Industrial Policy

* Including 102.70 M.T. used as captive consumption.

** Including 56.80 M.T. used as captive consumption.

*** Including 859.32 M.T. used as captive consumption.

**** Including 602.03 M.T. used as captive consumption.

***** Including Nil used as captive consumption.

****** Including 16.74 M.T. used as captive consumption.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

· ICICI Bank Limited, ICICI Bank Towers, Bandra Kurla Complex, Mumbai - 400 051, Maharashtra, India

· Citi Bank NA, Jeevan Vihar, 3 Sansad Marg, New Delhi – 110 001, India

· Yes Bank Limited, 9th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai - 400018, Maharashtra, India

· Canara Bank, 1-D.D.A. Building, Nehru Place, New Delhi – 110 019, India

Facilities :

Secured Loans	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
LONG-TERM BORROWINGS
Rupee term loans from banks	0.000	36.700
Loans taken for vehicles	0.000	1.400
SHORT-TERM BORROWINGS
Rupee term loans from banks	247.500	150.000
Other loans and advances	341.000	315.400
Total	588.500	503.500

Notes:

LONG TERM BORROWINGS

The term loan from bank is an Indian Rupee loan taken from Yes Bank during the last year for capital expansion/ reimbursement of capital expenditure/ general corporate purposes or long term capital margin. The tenor of the loan is maximum 36 months and the repayment is to be made by way of 30 equal monthly installments after 6 months from the date of first disbursement i.e. 24 January 2012 . The applicable effective rate of interest is 13% per annum, to be paid on monthly basis. The loan is secured by exclusive charge on immovable fixed assets (Company's guest house), unconditional and irrevocable personal guarantee of directors, unconditional and irrevocable corporate guarantee of HPL Mercantile Private Limited and non disposable undertaking from Mr. Harcharan Singh, Mrs. Manjinder Pal Kaur, HPL Securities Private Limited, Clear Chem (P) Limited and HPL Mercantile Private Limited for their shareholding in Company's capital. The loan has been fully repaid on 24^th July, 2013.

Vehicle loans taken from various banks carry interest rates ranging between 8.5% - 13%. These loans are secured by hypothecation of respective vehicles and are repayable within next 12 months.

SHORT TERM BORROWINGS

Cash credit facility from banks carry interest ranging between 12% - 13% p.a., computed on a monthly basis on the actual amount utilized, and are repayable on demand.

Packing credit facility from Citibank is in foreign currency and carries interest ranging between 3.5% - 4% p.a., computed on a monthly basis on the actual amount utilized, available for a maximum tenor of 180 days per drawdown.

Buyer’s credit facilities from banks are in foreign currency and carry interest ranging between 1% to 3% p.a., payable with repayment of the principal amount. This is available for a maximum tenor of 180 days.

Short term loans from banks include:

- Indian Rupee working capital demand loan from Canara Bank taken during the year for meeting working capital requirements, available for a maximum tenor is upto the tennability of the credit limit which is 30^th June, 2013 and repayable on demand with effective rate of interest ranging between 11.75% - 12% per annum to be paid on monthly basis.

- Indian Rupee working capital demand loan from Citibank taken during the year for meeting working capital requirements, available for a maximum tenor for 6 months and repayable on demand with effective rate of interest of 12% per annum to be paid on monthly basis.

- Indian Rupee loan from Citibank for meeting working capital requirements, available for a tenor of 360 days from the drawdown date with effective rate of interest ranging between 11.75% to 12% per annum to be paid on monthly basis.

All the short term borrowings are secured by hypothecation of debtors, movable assets including plant and machinery, both present and future stock of raw materials, stock in process, finished goods and stores. This is further secured by way of equitable mortgage of land and building at Ballabhgarh and Dudhola. The directors have also given their personal guarantee.

The term loan from bank is an Indian Rupee loan taken from Yes Bank during the last year for capital expansion/ reimbursement of capital expenditure/ general corporate purposes or long term capital margin. The tenor of the loan is maximum 36 months and the repayment is to be made by way of 30 equal monthly installments after 6 months from the date of first disbursement i.e. 24 January 2012

The applicable effective rate of interest is 13% per annum, to be paid on monthly basis. The loan is secured by exclusive charge on immovable fixed assets (Company's guest house), unconditional and irrevocable personal guarantee of directors, unconditional and irrevocable corporate guarantee of HPL Mercantile Private Limited and non disposable undertaking from Mr. Harcharan Singh, Mrs. Manjinder Pal Kaur, HPL Securities Private Limited, Clear Chem (Private) Limited and HPL Mercantile Private Limited for their shareholding in Company's capital. The loan has been fully repaid on 24^th July, 2013.

Vehicle loans taken from various banks carry interest rates ranging between 8.5% - 13%. These loans are secured by hypothecation of respective vehicles and are repayable within next 12 months.

Banking Relations :	--
Auditors :
Name :	BSR and Company Chartered Accountants
Address :	Building No.10, 8^th Floor, Tower B, DLF Cyber City, Phase II, Gurgaon – 122 002, Haryana, India
PAN No.:	AAAFB9852F
Subsidiary Companies :	· HPL Investments Limited, India (CIN No.: U74899DL1994PLC059434) · High Polymer Labs Inc., United States · HPL Innovation Private Limited, India (CIN No.: U24100DL2009PTC189161)
Associates :	· HPL Securities Private Limited · HPL Mercantile Private Limited · Templeton Strategic Emerging Markets Fund II, LDC (uptil 30^th January, 2012)
Enterprises over which key managerial person or his relative have significant influence :	· HPL Securities Private Limited · HPL Mercantile Private Limited · Clear Chem Private Limited · Sawhney Exports Enterprises, India

CAPITAL STRUCTURE

AS ON 30.09.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
15000000	Equity Shares	Rs.10/- each	Rs.150.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
11557430	Equity Shares	Rs.10/- each	Rs.115.600 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2013	31.03.2012	31.03.2011
I. EQUITY AND LIABILITIES
(1) Shareholders' Funds
(a) Share Capital	115.600	115.600	130.154
(b) Reserves & Surplus	1300.400	1244.900	1368.700
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	1416.000	1360.500	1498.854
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	38.100	7.100
(b) Deferred tax liabilities (Net)	119.200	135.000	146.800
(c) Other long term liabilities	0.000	0.000	0.000
(d) Long-term provisions	28.500	9.300	8.400
Total Non-current Liabilities (3)	147.700	182.400	162.300
(4) Current Liabilities
(a) Short term borrowings	588.500	465.400	209.300
(b) Trade payables	180.800	241.300	248.200
(c) Other current liabilities	132.600	118.400	146.246
(d) Short-term provisions	22.300	42.600	22.400
Total Current Liabilities (4)	924.200	867.700	626.146
TOTAL	2487.900	2410.600	2287.300
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1010.400	900.600	1062.400
(ii) Intangible Assets	1.700	3.500	5.500
(iii) Capital work-in-progress	5.700	119.100	74.400
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	364.400	364.400	14.400
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	39.000	52.000	48.600
(e) Other Non-current assets	0.200	0.000	0.400
Total Non-Current Assets	1421.400	1439.600	1205.700
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	626.600	575.600	637.300
(c) Trade receivables	320.300	338.900	358.300
(d) Cash and cash equivalents	38.100	10.300	28.500
(e) Short-term loans and advances	81.300	45.900	57.400
(f) Other current assets	0.200	0.300	0.100
Total Current Assets	1066.500	971.000	1081.600
TOTAL	2487.900	2410.600	2287.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2013	31.03.2012	31.03.2011
	SALES
		Revenue from operations	2396.900	2477.100	2194.700
		Other Income	29.900	27.300	27.600
		TOTAL (A)	2426.800	2504.400	2222.300
Less	EXPENSES
		Cost of materials consumed	1548.900	1449.400	1294.600
		Purchases of stock-in-trade	0.000	10.600	11.200
		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(23.700)	37.800	(110.000)
		Employee benefit expense	247.300	226.300	211.500
		Other expenses	436.500	439.200	514.200
		Prior Period Items	0.000	0.000	8.200
		TOTAL (B)	2209.000	2163.300	1929.700
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		217.800	341.100	292.600
Less	FINANCIAL EXPENSES (D)		55.600	23.600	18.400
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		162.200	317.500	274.200
Less/ Add	DEPRECIATION/ AMORTISATION (F)		93.400	90.800	85.400
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		68.800	226.700	188.800
Less	TAX (H)		13.300	68.000	63.600
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		55.500	158.700	125.200
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		789.400	649.900	524.700
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	5.700	0.000
		Final Dividend	0.000	11.600	0.000
		Tax on Dividend	0.000	1.900	0.000
	BALANCE CARRIED TO THE B/S		844.900	789.400	649.900
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Exports	724.000	1101.400	1095.600
		Dividend	0.500	0.400
		Sale of Services	13.500	0.000
	TOTAL EARNINGS		738.000	1101.800	1095.600
	IMPORTS
		Raw Materials	934.600	971.600	716.594
		Capital Goods	0.000	0.700	0.000
	TOTAL IMPORTS		934.600	972.300	716.594
	Earnings / (Loss) Per Share (Rs.)		4.80	12.55	9.73

KEY RATIOS

PARTICULARS		31.03.2013	31.03.2012	31.03.2011
PAT / Total Income	(%)	2.29	6.34	5.63
Net Profit Margin (PBT/Sales)	(%)	2.87	9.15	8.60
Return on Total Assets (PBT/Total Assets}	(%)	3.25	11.76	8.59
Return on Investment (ROI) (PBT/Networth)		0.05	0.17	0.13
Debt Equity Ratio (Total Debt/Networth)		0.42	0.37	0.14
Current Ratio (Current Asset/Current Liability)		1.15	1.12	1.73

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	Yes

INDEX OF CHARGES:

S. No.	Charge ID	Date of Charge Creation/Modification	Charge amount secured	Charge Holder	Address	Service Request Number (SRN)
1	10340105	01/03/2013 *	100,000,000.00	YES BANK LIMITED	9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR. ANNIE BESANT ROAD, WORLI, MUMBAI, MAHARASHTRA - 400018, INDIA	B71970420
2	10335119	17/10/2012 *	200,000,000.00	YES BANK LIMITED	9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA, DR. ANNIE BESANT ROAD, WORLI, MUMBAI, MAHARASHTRA - 400018, INDIA	B60767308
3	10012103	28/04/2012 *	237,500,000.00	CITIBANK N.A.	JEEVAN BHARTI BUILDING, 4^TH FLOOR, 124 CONNAUGHT CIRCUS, CONNAUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA	B39377874
4	90041520	28/04/2012 *	315,000,000.00	CANARA BANK	1-D.D.A. BUILDING, NEHRU PLACE, NEW DELHI, DELHI - 110019, INDIA	B39493135

* Date of charge modification

COMPANY OVERVIEW:

Subject is a public company domiciled and headquartered in India. It is incorporated under the Companies Act, 1956. The Company is primarily engaged in manufacture of chemicals including blowing agents, antioxidants, azo-initiators and speciality chemicals. The Company caters to both domestic and international markets.

BUSINESS OPERATIONS AND FINANCIAL PERFORMANCE

Sales and other income for the period were Rs.2426.800 millions, as against Rs.2504.400 millions during the previous period, thereby reflecting a slight decrease of 3.10%. There is a decrease in profit before tax from Rs.226.700 millions to Rs.68.800 millions this year. Profit after tax decreased from Rs.158.700 millions to Rs.55.500 millions.

Exports constituted 32.02% of total revenue (previous year 47.46%) and are at Rs.765.700 millions in the current year as compared to Rs.1175.600 millions in the last year.

FUTURE PROSPECTS

Various politico-economic factors continued to affect Indian economy growth for second consecutive year. Government remained plagued by indecisiveness failed to roll out badly needed reforms thus causing alarming decline in GDP growth rate, which hit 5.1% in last quarter of 2012-13. Frequent and serious corruption charges on its governance further eroded faith of all stakeholders in Indian economy. Though some positive signs emerged from USA, indicating slow but steady economic recovery and European Union situation did not destabilize further, economic downturn finally did catch up with developing Asian economies all around.

These factors, coupled with firming up of commodity prices and consistent inflation did not allow RBI to soften interest rates, which further curtailed new investment to augment manufacturing capacities and supply line. Retardation of growth in key industrial sectors was apparent. Overall effect has been visible pressure on Indian Rupee.

Despite such grim macro economic factors and calling off of MOU for JV in Antioxidant business with Songwon, it is a matter of satisfaction that the company could maintain a flat top-line, spurred by focused and sustained efforts externally and on operations, though weak markets and resultant product mix with increased cost of energy and production did compromise their operating margins.

Consolidation of operations, strengthening of systems / team in key areas and plugging of weaknesses, investment of resources in growth oriented new projects has given confidence to the company to look at future positively and take a quantum jump in sales turnover in coming year. Technology improvement initiatives rolled out last year for Blowing Agents and Hydrazine Hydrate are on track to succeed now. A few high value products have been identified for expansion of respective manufacturing capacity. After strengthening of Projects and Engineering Services, fresh talent has been inducted in Marketing and R&D teams to support growth plans of the company.

The company has moved its corporate offices to new premises on Mathura Road Faridabad. Bringing key business functions together in new premises and closer proximity to manufacturing sites have enhanced coordination, efficiency and productivity.

The company continues to reiterate its faith in its human capital and invests in improving its skill-set and capabilities to drive and sustain growth trajectory of the organization.

CONTINGENT LIABILITIES NOT PROVIDED FOR:

Particulars	31.03.2013 (Rs. in Millions)	31.03.2012 (Rs. in Millions)
a) Demand on account of non-payment of Local Area Development Tax (LADT) for the period 2002-2003	0.400	0.400
b) Claims against the Company not acknowledged as debts
Excise duty and service tax	2.200	2.000
Income-tax	12.700	8.600
Employee State Insurance	0.400	0.400
Value Added Tax	10.200	--
c) Civil cases
Customer	11.000	--
Others	Unascertained	Unascertained

Fixed Assets:

· Freehold Land

· Building

· Plant and Machinery

· Furniture and Fixtures

· Office Equipment

· Vehicles

· Computers

· Software

WEBSITE DETAILS:

OVERVIEW:

Subject (formerly known as High Polymer Labs Limited), is a renowned name in area of Polymer Additives and Specialty Chemicals. It has four state-of-the-art manufacturing units with high degree of automation. With 80% share in the Indian (domestic) market and exports to more than 45 countries across the world, more than 60% of its turnover is from exports to Europe and America.

Company's R&D centre is outfitted with requisite testing equipments in its laboratories, bench scale facilities and a multi-functional pilot plant and is the proud recipient of many awards including DSIR National Award, ICC Acharya PC Ray award for development of Indigenous Technology and PLASTCON, 2009. A systems company, subject has accreditation for ISO 9001; ISO 14001 and OHSAS 18001. Subject team of scientists, engineers and management professionals is one of best in industry.

Subject supports principle of a more effective chemicals regulatory system in order to deliver sustainable health and environmental safety benefits and has formed special group to ensure compliance with implementation of REACH.

Subject recognized relevance and significance of IT as an enhancer in its value chain. As a first step, whole organization and major business functions have been seamlessly integrated on ERP platform. Plans to introduce Business Intelligence tools, CRM platform apart from in-house Whiteboards are being drawn as next step ahead.

Subject firmly believes that it’s most valuable and productive assets are its Human Force. It has invested considerably in inducting and nurturing talent all through. Continuous on-the-job and general management skills training supported by career path planning have created talent pool ready to take on contemporary and future corporate challenges.

Today subject is in process of realizing its dream of being a transnational corporate in next three years with green-field projects in China and Middle East Asia.

AWARDS

National Award

National Award for R&D efforts in industry-2003 in Chemicals and Allied industries sector

In order to provide encouragement to research and development in industry, Department of Scientific and Industrial Reach (DSIR), Ministry of Science and Technology, Government of India instituted National in-house R&D awards for outstanding R&D achievements of Indian Industry in the year 1988. Till the year 2000, the eligibility for these awards was restricted to those industries whose in-house centers were recognized by DSIR. Since the year 2001, these awards were thrown open to all units of Indian industries, registered as corporate companies, which may be public limited companies, private limited companies, partnership or proprietary concerns registered in India.

These awards are in the form of shields made of sterling silver and are presented along with citations at the inaugural session of the Annual National Conference on in-house R&D in industry. During the last 22 years, 162 such R&D awards have been presented by DSIR.

Indian Chemical Council National Awards

Acharya P.C. Ray Award for development of Indigenous Technology (Antioxidants, UV stabilizers and Azo-initiators) for the year 2005-2006 again in the year 2010

Started out in the year 1938 to promote the interests of the nascent Chemical Industry. Pioneers of the chemical industry in India such as Acharya P. C. Ray brought together a group of industrialists including Rajmitra B. D. Amin, founder of the Alembic Group of Baroda.

What began as a vision, emerging from foresight and aspirations, became the Indian Chemical Manufacturers Association and was again rechristened the Indian Chemical Council. It became the representative body of the Rs.500 billion / US $ 16 billion chemical industry in India. Its members include both Indian companies with a global presence as well as subsidiaries of multinationals.

the apex national body representing all branches of the Chemical Industry in India such as Organic and Inorganic Chemicals, Plastics and Petrochemicals and Petroleum Refineries, Dyestuffs and Dye-intermediates, Fertilizers and Pesticides, Specialty Chemicals, Paints etc.

Given under various categories are prized by the industry and recognize outstanding achievement by the company or persons among their peers in the industry.

Plasticon Awards

Plasticon Awards 2009 for Best Research (Polymer Science, Technology and Engineering) for commercializing antioxidants

PLASTINDIA FOUNDATION - is the apex body of major associations, organizations and institution connected with plastics, with common objectives to promote the development of the plastics industry and to assist the growth of plastics and related materials and their products. The Foundation is dedicated to national progress through plastics.

Plastindia Foundation instituted PLASTICON Awards with the objective to encourage and recognize innovation and growth in all facets of Indian Plastic Industry and to honor significant contribution made by Indian business enterprises, Institutions, NGOs and individuals who have excelled in their Endeavour. Recognition comes by honoring them with presentation of Plasticon Awards at public platform in presence of the Plastic fraternity.

Chemexcil

Chemexcil Export Award- First Grade Award for Inorganic, Organic and agrochemicals for the year 2006-2007 in recognition of organization's out standing export performance

Chemicals Pharmaceuticals and Cosmetics Export Promotion Council, (CHEMEXCIL). was established in the year 1963 with headquarters at Mumbai and with the objective of making concerted efforts to promote exports of Drugs and Pharmaceuticals, Dyes and Dye Intermediates, Basic Inorganic and Organic Chemicals, Including Agrochemicals, Cosmetics and Toiletries, Agarbatties, Essential Oils, Medicinal plants/value-added Herbal products and Castor Oil. The selection of awards is made on the basis of consistency and growth achieved in exports during the three years and diversification of exports.

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.62.48
UK Pound	1	Rs.102.95
Euro	1	Rs.84.60

INFORMATION DETAILS

Report Prepared by :

SMN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		50

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.